Transcripts For CSPAN2 SBA Administrator Maria Contreras-Sweet Testimony On Agency Management 20160111

Everyone here wants the same thing and that is to serve americas businesses the best we can. Those of us out here on the dais at the lincoln advantage of issue and let us know how we are doing all the time and on an ongoing basis as head of an agency i sometimes worry that too often you most fear from your own folks and from other washington bureaucrats fear that is the only explanation for why the six to nine gao identified concerns and problems havent been addressed. Yesterday wasnt the first time these issues have been raised. Yesterday we heard some pretty serious concerns both by members of this committee and from our gao witness who testified here yesterday about the management of the sba. Administrator maria contrerassweet, since you are with us yesterday will recap is briefly although im sure your staff is already given you a rundown. I told the gao witness yesterday that this kind of reminds me of being a parent. If your teenagers room is the mass and then stuff from all over the place, lets say there are 70 items thrown on the floor comes to exceed nine to be exact and mailed to pick up seven items, you dont get the 62 remaining on the floor and raised their allowance for having made some progress. The ongoing problems that the sba in gao identified span the entire bread from Information Technology and security to staff Management Issues from Disaster Response to land in and contract being and districts on both sides of the aisle are paying the price for your agencys failures. What we have here is the failure of confidence in the sba and unfortunately for good reason. Before the hearing is over, i hope to hear a commitment to resolve as many problems as possible by june 30th of this year. I do appreciate how successful youve always done to members of the many and i request your officer providing Monthly Updates to ours have documenting your progress. If i were you, i would start with these i. T. And cybersecurity deficiencies. That is what worries me the most and i will tell you why. We have seen the irs said, state department, opm, even the white house pack. Small businesses trust the sba, your agency with their information. Often times very Sensitive Information that they dont want a rival business or neighbors or the Chinese Government to have access to. Yesterday, gao told us this information is not adequately secured and that cannot continue you want to make this simple. We are asking you to do your best to fix it. I would not yield to the Ranking Member for the opening statement. Thank you, mr. Chairman. Thank you are holding this important hearing. The only agency in the federal government charged specifically with helping Small Businesses grow and succeed, the Small Business and an assertion is critical to our nations Overall Economic health. All of the functions are to strengthen and preserve the Real Foundation of our economy. For Small Businesses to fully reap the benefits from sbas program, it is important to operate efficiently and effectively, investing taxpayer dollars wisely. One of the most important roles of these committees conducting vigorous oversight of the sba and its activities so we know the agencies serving Small Businesses while spending taxpayer dollars wisely. Yesterday the Committee Heard from the Government Accountability office and described the management report requested by myself and former chairman grades. Gao testified about a wide range of very management challenges, many of which have persisted for years. I do fully recognize that many of these problems before the administrator trained to tenure and furthermore demonstrated them. Without that, there is still much work that needs to be accomplished in terms of addressing gaos recommendation with only 15 out of the 63 recommendations there needs to be patrolling and prove that the agency. Without that, i understand the frequent changes in Political Leadership create difficulties for management. That is not an excuse, but rather every environmental sba function. So here you are. You will be sked to respond for 64 recommendations that have been made not only on the leadership, but for previous administrations. I feel optimistic of your commitment to tackle those issues and you are here to discuss how you intend to execute those recommendations by gao. First and foremost the agencys complex organization of structure may be its ability to form its nation effectively. Yesterday i was raised time and time again that sbas operation as a silo resulting in inefficiencies and obligations. There also continues to be significant Information Technology as well. The agency has yet to implement more than 30 recommendations, made by the office of Inspector General completed to i. T. Security. This raises concerns of whether the sba data assistant are potentially vulnerable to breaches. The sba Standard Operating Procedures are often in need of updating. If the agencys own admission, 74 of these provisions require revision and 31 should be counseled while another nine still need to be shipped. Yet we have a meaningful timeframe as to when all of these will be accomplished. It is my hope that today administrator contrerassweet on where the procedure stands. These are some of the longstanding issues raised for theres always room for improvement, i was heartened to hear that sba has accepted and i look forward to learning how the administrator is instituting change. I recognize that a political appointee is in the difficult position of boss and having to answer for the work of her predecessors as well as the career officials that often drive many peak agency decisions. But that i would like to thank the administrator for being here. I know your schedule is busy. As always we appreciate your participation. I yield back. Thank you remaster the generally yields back here to Committee Members have opening Opening Statements i asked they be submitted for the record and a brief explanation of titles out here which you are already familiar with. We operate under the fiveminute rule. Youll be given five minutes to testify. If you need with an eye, we will give you leeway since we only have one witness feared although he kept it within three minutes. We are not asking you do that. We will restrain ourselves by the same rules, five minutes ago back and forth between republicans and democrats of course. We all know who you are. Im not going to give a long explanation of who the administrator is but the 24th administrator of the u. S. Small business administration. Sure into, we welcome you here this morning. You are recognized for five minutes or perhaps a longer if you need it. Thank you. Let me just thank you and Ranking Member for last class and all the members of the committee for engaging in the work and giving me this opportunity to testify before you today. I would like to open just quickly with a review of fiscal year 2015. It was one of the most successful years in our agencys history. Sba reached historic levels for Small Businesses lending under our flagship sevenday guarantee loan program, extending a whopping 23. 5 billion in gross approvals. This represents a 22 increase in the number of loan approval to prior last year. A 23 increase in the dollar amount compared to 2014. These things matter because fda data shows that conventional lending has only returned to 84 of prerecessionary levels. The nocaps in the marketplace is a very purpose for which sba was created. We make notable progress increase in sevenday loan with the greatest difficulty accessing capital important emphasis. The dollar value of our laws is you are 22 to women, 23 to minorities and 103 to veterans. Our number of loan approvals of 29 again i just said that. These successes would not have been possible if not for the swift work of your committee. Due to her recordbreaking year, sba ran up against our statutory lending cap before the end of our fiscal year as the urging of our stakeholders, and mutual stakeholders in less than a week. In less than a week, you pass a fourpoint lead billion dollars increase in our sevenday Lending Authority and ushered the passage onto the house floor. Your leadership allowed entrepreneurs across the country to continue to access the requisite capital they need to start repair and grow their businesses. Sba also shattered our record for Small Business investment under our fdic program. We grew our portfolio by 10 to a record 25 billion. In fy 16, and the sevenday, 504 and fdic Program Share a Common Thread and i know youll appreciate this. All these programs are expected to operate at zero subsidy this fiscal year. Thanks to this committee for working across the aisle to include an omnibus bill the permanent reinstatement of the final four of the title for authority and an increase in sbic family fund limit. Policy changes will inject muchneeded capital into our Small Business ecosystem. Another priority for the sbas federal contract team. The u. S. Government awarded an alltime high of 24. 99 , while low for our mandated congressional mandate of 23 of government contracts to Small Businesses supporting about 550,000 american jobs. We reached historic procurement bubbles of the small disadvantaged businesses and firms by veterans. To summarize, sba achieved a record your Small Business lending, record your investment in a record year in contracting with no taxpayer subsidy needed to maintain this momentum. This is the context in which our hearing takes place today. Let me take an opportunity to acknowledge the Government Accountability office are helping to confirm the areas of shared concern and for construct a suggestion to address them. For my first days in office, i have prioritized the need to modernize sba operations enterprisewide to respond to the technological, demographic and globalization changes that are transforming our Small Business economy. To that end i agree with many recommendations and appreciate the opportunity to address them to fully bring mr. Chairman and the sba the 21st century. By corporate, the government and Community Banking experiences will be brought to bear to make sure that you feel comfortable and the American People feel confident in our system whether it be the Enterprise Risk Management board that ive established and all the other systems have put in place. Weve implicated a number of measures but my background started three business impressed upon me the importance of them return on investment with putting precious taxpayer dollars to use. We have to take every measure to use those dollars wisely based on the best available data. In july 2014, i established an Impact Evaluation working group within this union and Refining Program evaluation of orangeburg a Real Development programs. Ive held numerous meetings with key Resource Partners, sbc score stressing the importance of meaningful metrics. We are currently providing indepth evaluation across the agency. This includes comprehensive assessment of the sbic program in our history and collaboration with that wanted to make sure confidence that we went to the library of congress to do this work. Our report is due out this spring. Weve also made significant strides in addressing Information Technology challenges included in the gao report. We are well under way of a major upgrade of our i. T. System. It starts with a comprehensive Network Infrastructure modernization to give our system rater capacity, transparency and reliability. We are in the final stages now is moving our entire email system into the cloud for more security and reliability and capacity. We are investing in mobile technology, recognizing our sba staff must go beyond the walls of the federal offices and go to consumers and Small Businesses where they are. We also want project to modernize blending in Contracting Systems to reengineer our disaster Credit Management system, something i care deeply about. The entire modernization agenda complements our work to update and manage partner platform, the outward facing part of sba by bringing advances such as automation, digital signatures. An online matchmaking to the entrepreneurs that we serve. These are timesaving a are timesaving accosting and Technology Enhancement that have encouraged Community Bankers to come back to sba in many instances or to expand their lending. Weve taken important steps on our Capital Management efforts. Im proud to work alongside the thousands of hardworking, dedicated Public Servant that sba and Resource Partners are committed to ensuring the agency has the talent required to effectively serve it americas entrepreneurs. We are currently crafting a a comprehensive work plan will include a Skilled Staff assessment and make a closure plan. We have taken steps to address the sbas aging workforce not just unique to sba but across the federal government challenge. As the program i understood that we wanted to offer employees an opportunity to make decisions to create openings so we could begin to fill competency gaps. Sba is organizing our president ial Management Fellows Program to increase our end pact working with veterans, attracting more peace corps to our programs and i know youre going to love this. We installed the firstever key learning officer at sba. Ive been on the job for 20 months and im proud of the progress, but the truth is i could not have done this without your commitment and im grateful for your support. As a result of your leadership in daily efforts of dedicated staff, i inherited an agency highly leveraged, operating effectively and focused on advancing and fulfilling our statutory mission. Again, the proof of the pudding is in the tasting and eating and a record of our historic achievements speak to that. Theres always room to improve enough over here to talk about today. Guess im committed to working with you to improve the services and give Small Businesses the agency that they deserve and that taxpayers expect. Thank you. Thank you at a yield myself five minutes to begin the questioning. Not an administrator, as they mention in my opening statement, the gao witness yesterday testified sbas i. T. Security, the i. T. Security believes the Sensitive Information of Small Businesses and their owners vulnerable to hackers, theft, fraud. Get the sba has failed to implement more than 30 of the office of Inspector Generals recommendations related to i. T. Security big and small and individuals ask those. What is being done to address these problems and when will it be completed . That is a fair question, chairman. I think Technology Drives increasingly more and more of our lesser mike her way to smartphones and so it has to be an essential part of our strategy at sba. Just as an example to show you the progress since i arrived and i was here the last time i was here you asked me about the load Management Accounting system. That is the main body with which we interact with our Lending Partners, an important function and purpose and it had been there for a while working its way through and i committed to use that i would get that done and we did. To say that we are now off the mainframe and we have an interoperable, compatible system with todays technology where we can plugandplay systems is a wonderful achievement that even many fortunate companies dont achieve and many in government. I am proud the sba has argued she that. Let me ask you this. My time is limited as you know. I would like your commitment to resolving the gao recommendations by jim 30th and having our staff briefed on the progress on a monthly basis. Do i have that commitment . I commit to reporting to you on a regular basis and will work with god be to make your deadline. We are shooting for the 30th. Lets get it done. Mr. Chairman i was able to catch the pope while he was here and it confused me with the ability you closer than i did. Let me move on to another question. When the gao interviewed your district personnel so that they could do their review, your folks insisted on having a lawyer present. When the gao is here, trent kelley, member of this committee who happens to be a former prosecutor and District Attorney himself made an observation. He said in his experience when people lawyer up as your folks did, it often means they have some in the hide. Who made the decision to have a lawyer present. The need to do that when the gao an arm of congress is just performing its duty at the request of this body and at the request of the former chairman and the Ranking Member. This is a bipartisan request. You know, again i think that is a fair comment. I did not know that was happening. Honestly, that is one thing i want to say. If youve ever met her district staff, ive got to tell you nothing intimidates these people. I go meet with them and we have lawyers in the room and they still tell me all the challenges and the wonderful things they are doing. With all due respect, shouldnt you know who gave an order like this that interfered with the gao to conduct an investigation that began the gao is the branch we all get a paycheck. Taxpayers pay for it. We shouldnt have to lawyer out. Mr. Chairman, if i may respond, what i really wanted to say is i have no idea if it was the reverse, the reciprocal and i will look into it and get back to you. They could have been the employees felt intimidated by an investigation and may be wanted somebody in their presence. I understand what they did get briefed on is the ig in particular said he had independent ability to follow it through email and was able to get the information and clearly by this report you can see nothing was hidden. It shouldnt take until june 30th to find out who made the decision. I have limited time for one more question. The gao review of the sba stated and i quote, in the september 2015 report, we found that the sba has not resolved many of its longstanding management challenges due to lack of sustained priority attention over time. Gao went on to say this raises questions about the sba sustained commitment to addressing management challenges. In other words, dealing with the sba shortcomings and deficiencies in many cases failures, apparently just isnt a priority to some of your folks. While it is a priority to this committee. Why should we not question the sba sustained commitment to improving itself. Youve indicated you are willing to do that. We are willing to work with you so it can serve the needs of Small Businesses across the country. Let me just say a was great i meant when i read the report these issues had in the 90s and some even as far back as the 80s. I appreciate ive been here for 20 months. I think you see the progress weve made is quite remarkable as i mentioned to you im committed to keeping momentum going and with the good lord making the progress your expectations in the period i am absolutely committed to making sure people understand the sba is a fact did and as i said the numbers prove it out. Sometimes it is not pretty and it should be in terms of our documentation and processes. When he thinking Technology Technology that we start a program called link in this amount of time that were able to start a program like match. Com. I dont know if you are familiar. You dont have to tell me if you are. The point is seriously for the record i know nothing about it. [laughter] with that system, we are now able to get dates for prospective buyer worse. This data is with the lender. 22,000 people have been connected in just a few short months. That is a remarkable technological accomplishment. Sba one where we are now introducing our lenders. I understand there are challenges and documentation. I want you to know the work is getting done. Thank you gave my time has expired. To reiterate, our number one priority is what is the best businesses priorities and 70 of the new jobs created across americas Small Businesses doing that. We need to do our best. I now recognize the Ranking Member for five minutes. Thank you, mr. Chairman. I just would like to enter into the record as a matter of fact that in iso p. 4002, it is a requirement for a Legal Counsel to be present when district staff has been interviewed. So here it is. It is part of the sop. I would like to ask the administrator. I would like to recommend to you that you start with 4002 to remove carriers through gao access. So you could start with this sop, updating it so it reflects that there is no intention to prevent staff speaking to gao or gao to have access to document the Small Business administration. With outside in the report administrator contreras found that sba has not implemented this reform, which this committee offered when i was chair and 2008. I asked the same question to gao yesterday, but i would like to hear your answer as well. What are the many reasons why sba has not established an Immediate Disaster Assistance Program . You and i talked about that offline and i heard you loud and clear and i did a little work on that. Number one, i learned we had promulgated an interim role and we put it out and then when we were recruiting banks Financial Institutions, quite frankly, you and i could hold the roundtable. What they said is the Immediate Disaster Assistance Program my time is limited. I know you are talking to lenders. What is the timeline for doing so . We are to have an interim rule for idap that we can use and deploy to start using that. When you ask the bank to advertise the 25,000 loan over 10 years, it is something that has a low interest cap. Somehow we have to make it more attractive. In the spirit of what you want, i want to assure you the office of disaster does provide loans and we are sitting on collateralized 25,000 loan now being processed in seven days. As you know, we have been dealing with the issue of fun being in new york and so many people, businesses who qualify for those loans didnt get it. We pass legislation now to reopen and for people businesses to reapply. But if you see some issues where you feel that there has to be some legislative fixes, we need to hear about it. So lets have that discussion and get these programs up and running because we cannot wait until the next Natural Disaster strike and come back here to be on the same position as can the same questions. When i looked into that i agree with you. That is why i put out the public rulemaking and that without an available. As soon as we get the comment we will respond back to you on what the remedies might be. Im also pushing forward on the idap to make sure all the compliments you intended are executed in the way you imagined. I want to add if i made the Disaster Assistance has an something very, very important to both of us and that is why the day i was sworn in a committed to the state of washington to look at arlington. I went to the state of North Carolina to meet with nikki haley and she was experiencing hers and im committed to go into missouri. We have a dozen employees in missouri already examining the disaster to determine the appropriate response. Records show that now once we are given permission and declare disaster we are there in 24 hours. Thank you. I want to congratulate you on the many successes including the landing dollars, contract goals in up to 10 . Or we could do better and that is the reason why we are here today. We need to update the sop is because if the agency cannot hold his resources accountable and theres confusion as to how the programs are supposed to operate, that will impede the success and for businesses to be able to get the assistance that they need. You can answer the question but i do want to make sure that on behalf of the committee would you want a Monthly Update on what progress is being made towards the deficiencies gao has set out in their review. I heard you, mr. Chairman. With great brevity let me say for those of you have not seen in sop, this is a complete review, and overall other departments way of operating. Some of these are inches tall. Is this important body of work i do want you to know that we have completed more sops in the 20 months that ive been than the prior five years combined. So that is just to show the momentum with which i taken this so seriously. Im working hard to make up time, lost time. I also want to have institutionalized so when someone comes in this is work that has been harnessed and seized. So to the point we have over 30 more as a piece over at interacting. So just know i take the sops essentially. For the institutional come institutionalization of our lexi. The gentleman from new york is recognized for five minutes. Thank you, mr. Chairman. Appreciate this hearing. With due respect, ill say right up front, im a little disappointed so far in the approach of the hearing in terms of the responses. The chairman said a to i think at the outset that we really want to Work Together Going Forward identifying all the deficiencies and the shortcomings, but the opening set of remarks i certainly appreciate how youve pointed out what you did with the resources to support Small Businesses. I want to state that very clearly insincerely. But really the focus here is on improving what are very disturbing findings from the gao. So towards that end my colleague from new york, mr. Hanna, leta subcommittee and they did i think very strong work on behalf of the American People with regard to procurement reforms. This was incorporate into the National Defense authorization act in 2013. But yet among the findings on the gao was that it has been no action taken. The law was very clear. Action was to be taken within six months of the implementation of vat law. So my question to you is, you know, what explains why nothing has been done on this board . Did you disagree with us on what was done . And if you do, it wouldve been nice to know that before now. But if you agree with us why has nothing been done . First of all let me just thank you for your service. I know that you are an admiral veteran and i really salute the work that youve done, particularly in a difficult zone in our world. Let me to speak if i havent shown or exhibited the level of seriousness with which i take this work i apologize, but let me just say when i looked that up to see the momentum because i thought that i should stress this to you, under prior administrations like in 2002, for example, there had been one department. In 2003, one. In 2004, zero. Under my term of already completed 47 of these just to show you the momentum with which im approaching this work. So please do not underestimate that commitment with which i make this commitment to you. I came from california. I had in california, i had 42000 employees to work with anyone state. Do you know here to the Ranking Members question, i have to than 2000 employees. You know, so temperature but we have to partner and we work for closer with our strategic partners. If you just took the air force alone, teaching of the air force is has 22000 captains . 2200 captains, excuse me. Just captains alone. I can i of fewer than 2000 employers across the agency and yet we are managing a portfolio of 120 billion, the most complex system of networks. We are procuring, redirecting 23 of the largest procurement in the world to Small Businesses successfully. And yes, we are pushing to dfar because i dont want a fraud, waste, and abuse. I can save when i started my personal business i could get certified as a woman business debar. So to me to make sure were doing those certifications is important. But also more portraiture people are not getting in who dont deserve to be in the program. And are abusing the program and take advantage of it and taking contracts and people who deserve them. So are people other fighting up against department of energy top officials, up against department of defense officials to our Small Business advocates, there in those places where people dont like them to be because we are sharp elbow length and to make sure every appropriate Small Business opportunity goes to a Small Business. So thank you, and i appreciate the passion that you bringing to the leadership, to the organization. Launches quick followup. As the chairman mentioned, we will be anticipating reports, a monthly report. I would help in the first one we will see an official response to the implementation of this fy 13 National Defense authorization act as relates to the requirements we levied upon the sba. I have very little time remaining. Let me just say that from my experiences leading formations, one of the things that concerns me is the level of turnover in the sba. So we will not have time for you to respond, but also for the record i would like to know from your Vantage Point as the leader, what are you doing to ensure continuity in terms of transition periods . So really two points. One is are you taking any executive action to lessen the turnover, and number two, what sops do you have in place to ensure that when you folks come on board that theres a good and effective transition . Mr. Chairman, im sorry im over at i yield back. The gentlemans time has expired. If you could give a brief answer and again we will be receiving reports so you can go in more in depth with a followup. Let me just say to me what of the most important things is to show people what their job is going to clarity and purpose and rewards of a properly. And to provide environment where there well resourced, their scope of work is codified at their well resourced as i said. I have put in the first ever sba chief learning officer. I have a skilled the function in our office where now i have somebody was actually has the theoretical and practical experience. Im holding town halls, visiting every District Office to learn of these come with the challenges are across the country. But let me just say, across the government we have an aging workforce challenge we have to address. Ive gone with my chief of staff to try to up with more people. Were holding job fairs across the country. Just in the short time ive posted 10 job fairs. Ive reached out to the peace corps and our veterans to try to attract more skills and competencies of discipline, entrepreneurship and perseverance. I think its beginning to pay off. The gentlemans time has expired. The gentlelady from california is recognized for five minutes. Thank you, mr. Chairman, Ranking Member. Very interesting hearing and i really want to thank administrator sweet for being here and just sitting here listening to you, your answers in your first couple of questions has really restored my passion for Small Businesses and what this agency is doing your i had an opportunity work with her when she was the secretary of california business transportation and housing agency. Aasked the administrator what i really appreciate it is your district staff, victor parker, and people that come to my district and weve held roundtables and we are toward Small Businesses together. That chairmans opening comment about sometimes all we hear is him or her own constituents about some of the problems. I think youve actually heard the problems yourself because youve been on the ground. Youve been in our Small Businesses. And while story this hearing is about the recommendations that we are trying to get responded to and reformed in the administration, its clear that your record later record year of lending and Small Businesses and investing contracting is what i care about. I know maybe the priorities on this committee are may be different hud thats my priority because that is what i always heard was access to capital and federal contracting. You certainly are addressing those previous weaknesses in the agency and its clear that the sba has been around since 1953, in many of these issues that were pointed out in the gao report have existed long before you and long before this administration. And whether or not you can address every single one of them by june, i dont know, but i have no doubt that you going to try, and thats important to you. But one of the issues in the report that was important to me, and i extend its also a priority for you, is the womenowned Small Business program. This is of course a program that allowed women owned Small Businesses to compete for federal contracts. One of the things we found was that there were problems verifying the eligibility of the applicants resulting in contracts being awarded to men. Yikes. But i know youre working on this. Can you tell us where you are in the process of making sure that those contracts indeed are being awarded to the womenowned businesses . Thank you. As you know when i arrived, you mandate of the week achieve a 5 but with women owned Small Businesses. And t to my great love that we have reached a 5 goal for contracting with women. Women are 50 of the population. So i think it should be something that should be achievable. And so we came to you again and i was delighted that congress has given us a brandnew tool, Sole Source Authority come where we know the ability to begin to certify businesses so they can take out any fraud, waste, and abuse. I just published to get the proper feedback to make sure were following the right procedures and processes and not just implementing something billy willy. So im pleased to tell you already weve got that out and we are already beginning to get comments nilly willy. Create a process for certification that will assure that people understand what is a woman owned Small Business, the standard is set to we people properly trained to be able to certify them. Thank you. I appreciate that because certainly in l. A. County, you know, we have more womenowned businesses and any other county in the country. We are very proud of that and we know, for me thats a priority in this committee, is that could were supporting the womenowned and norityowned businesses in my county for sure so i appreciate your work on that one concern and recommendation. You have been a stalwart on behalf of women not only for the county of los angeles before our country. Thank you for our leadership your leadership. A gentleman from virginia is recognized for five minutes. Thank you, mr. Chairman. I will yield back my time. The gentlelady from American Samoa who is the chairman of the subcommittee on health and technology, is ratified income is recognized for five minutes. Thank you, mr. Chairman, and the Ranking Member. Madam administrator, considering the recent new offices build that may or may not provide redundant roles as other offices in close proximity, was there any thought given to the u. S. Territories . And you explain your rationale speak what i saw, the rationale for what . Excuse me. Let me give you the question again. The u. S. Territories. The question was, considering the recent new offices build that may or may not provide redundant roles as other offices in close proximity, was there any thought given to the u. S. Territories . Yeah, i heard the question. Im trying to understand the are you saying that were building offices . I was just on to clarify . I think so. Because im not aware we are building an office there. Im trying to understand the context of the . The . Didnt. Of images and a daughter to sit down with you to understand if youre not getting the Service Level that you deserve and you expect to come back to you with a plan. Thank you, madam administrator. Next, what functions are performed i personal in the agencys regional offices . What are the personal functions . Yes. What are the functions performed by the personnel . Oh, i see. Thank you, thank you. What we have in headquarters is policy offices. And so you will have, for example, the office of general contracting and business development. You will have an office of capital access. So we have the various offices that operate the various programs and staff and line functions. In addition to offices with a magic all comes together, so there in addition office you have a lending relations specialist, a Business Opportunity specialist working alongside and Educational Development of specials and those people Work Together to create a sense of community to provide the full complement of services that are resource partner state and entrepreneurs need and our Lending Partners and local government. Ill give you an example. We have a challenge today where while we can be a Program Provider we also want to be a voice for Small Business. One of the challenges we done in local communities as they are the ones who license Small Business formation and in instances capital formation. Sober launched a program called startup in a day and started into is where we go into the city to make sure that they can put on online responses so that Small Businesses can start their business without having to go through a labyrinth of regulation. So to execute programs such as that. Have examined whether those functions can be performed at other personnel either at headquarters or in addition offices and thereby provide additional fulltime equivalent personnel are functions such as an increase in the number of Procurement Center representatives of . Honestly, having been an entrepreneur and a committee banker i have thought about that, and it was a tough call for me. I could convene and that everybody centered and headquartered in washington, d. C. , and not connected to community. But i decided it was more important to be embedded in the community and a part of the community understand what those nuances are in each neighborhood. I think the numbers prove thats working well. You do not have a chief Information Officer, a position i presume that you consider critical to the operation of the agency. Where are you in the process to find a permanent chief Information Officer of . The chief learning officer it is more of a learning, more of the Human Resource function i should say. But i did as a witch in Silicon Valley, i went to california to moscow to east coast to try to find a really thoughtful, successful person who knows how to procure and execute. I think i have some talent, i must say that im not an expert in technology. I would want to make sure that i had a top level of an advice to make sure i was filling the position of properly. So i have a strong person has been a dedicated employee of the sba as the acting come and have now put in what i call a chief design officer, digital officer, excuse me, that is working with us to fully complement that team and fill it in. We are getting candidates. Going to the right places to find the right people, but its tough governmentwide to attract Top Technology talent because the Salary Structure and compensation in government compared to the private sector. But im determined that i think we will be successful to do it. I think you do need a chief Information Officer. Agreed. Thank you very much. I yield back, mr. Chairman. I would just note the gentle that is correct that, in fact, by statute its record to cios so we would urge you to get that done, please. We will now move to the gentlelady from new york, ms. Meng and whos the Ranking Member of agriculture, energy and trade subcommittee. Sorry about that. I was given the wrong card. Ms. Lawrence, did you get here when we started the . All right. Ive been right ahead. Five minutes. Thank you so much. I want to thank the chair and our Ranking Member. I want to say, madam administrator, your response to the questions have been complacent on oversight so im used to speaking to our Department Heads and leaders in our government. Its refreshing to an administrative who, first of all, shows commitment, enthusiasm about your responsibility. Not youve been able to answer with a proactive response but to these questions and concerns i want you to know thats refreshing and i appreciate. In addition to that it is important that we do have reduced of departments. And the fact that the gao has identified areas that we can improve, we as a government need to look at those areas, but our commitment and our focus should be on how do we move forward. So without i want to say im very encouraged by your leadership. I wanted to follow again and something im very passionate about, share with my colleagues, and thats about the women and minorityowned businesses. And fo for the record and womenowned businesses grew by more than 25 , and minority owned grew by 38 between 20072012. If you want to say how did we grow our economy, it was on the way women dont and minority of businesses in america. So we should be very committed and focused on that area. The majority of the womenowned businesses have been, that have opened, has been in health care and social assistance sector. How has the sba encouraging and promoting women and minorities to open businesses in technology, manufacturing and engineering industry . Thats a very, very important question, because we had to make sure we are moving forward in terms of the skill sets that americas workforce who needs. I appreciate where youre going. Let me give you to brought answers. One is that just make sure were getting more people who traditionally have not been given access to capital come weve taken some very aggressive steps. We have zeroed out these almost 150,000. Thats an important thing just so the cost structure is better for the borrower. Second, i have recruited more and more outlets, Credit Unions. We had that engage Credit Unions to the extent i think they can be engaged. They are nonprofit, nothing taxes and they are willing to agree to enter into partnership with sba in an unprecedented way. I can come how to get, instead of having people lock on the door for a bank and another bank and another thing, what i wanted to do was put of this program are called link. Its again where prospective borrower answers some questions and then they are connected to Financial Institutions. As a reference to earlier, over 220022000 people have made manad to get back to last him i was in this room there was a woman is sitting in this audience who said as a result of link she was able to take the very serious rate loan and make it more, and more attractive loan. And as result increased our cash loan and is now growing into its, those are the stories i could across the country. The second point about making so were getting people into s. T. E. M. Fields which you allude to is we want to launch a program called innovative. What i say program, its an Outreach Initiative but what we want to do is to say to women who we dont see in Silicon Valley and doing the skill ups at the same rates, so we said innovative as a National Effort to reach out to women to say hack, disrupt, and said, change industries. You, too, can been cybersecurity. You can be precision medicine. You can be in arab politics. We need to get women in the nontraditional fields and so this effort of were going to set a scene with a kiss. And lester 100 various competitions women engaging in getting to disrupt industries that they belong to become proud of the progress became will continue to do it and we invite you to comment process that is when this month in march are well be convening the winners of those competitions. Thank you so much. Before my time is out, also wanted to comment on, you have addressed extremely well how youre putting in places standard operating plans and how youre addressing that. I want to make sure that we are supporting you, giving you the tools that you need. You complement it as a couple of times, for the action that we take. So its not so much just getting a report from you but also when you identify that there are areas that the government can support the Small Business administration, that we are getting those on a regular basis. Thank you. You can answer the question. Just as i stated earlier, we closed 14 sops after not having seen anything closed, more than four times, excuse me, more than in the prior four years combined as i said. We have an additional 41 pending and working collaboratively with the gao so the momentum is strong, and i do commit to you that we will double what we did last year. Thank you. The gentleman from california tonight is recognized for five minutes. Thank you, mr. Chairman. Madam administrator, ive got just a couple of questions. Wouldve been is on the line of the cio. I know to been there for 20 months. This is a critical decision. I understand the summit is overseeing this position as an assistant. Would we believe that person would have the same responsibility as a cio would . With the respond to your expectations . Because outsiders in response to response to the seat of all and not to you. So would that continue to be when the cio is hired in some future date . Would they still continue to respond to the coo or would they come to you . Thats a fair question. Let me just say that in the organizational structure as we have it, the operations, we have the deputy administrator who is sort of, if you will, to what is the term, but you did say the chief operating officer. And some the bowels of the organization, the functions that run and rev up the engine and art ward ill report into the deputy administrator. That is generally the way of sbs operator. So this person reports in the through that function and its working. This person has been hugely successful. I just had him present an entire town hall and want to tell you that few people in our agency enjoyed his work with them about we think are important ways to distribute information. He received one of the loudest applause is for the movie is making to put us on the cloud, to make that move. Hes getting now laptops for our Field Operations people so that they can go to meet and participate in the growth accelerator. But this would still come to you at some point, correct . Sure. Its a very flat organization and i make myself available. I participate in weekly senior Staff Meetings so ive seen this person i understand daytoday operations at how the process works, but at some point there are going to be responsibility decisions that are going to be made that are going to be made by you or beyond your doorstep. I just want to make sure thats clear a special when the cio gets hired. The 6 69 items, i know that peoe have made a lot of this and giving into for 20 months and these items coming up after that. Seven items being cleared up, and 62 items still being on the docket. As a leader of an organization such as yourself or anyone of us, there must be prioritization engine must put out the fires first and then start working on the issues that you think are number one through number, in this case, 69. Would you see any of these items are not on that list . In other words, would you say that hey, ive looked at the 69 items. Yes, there are some good items, something to want to work on, some issues want to fix, but there are some of them, and just by one of your statements, that you say that some of these might not be needed. Could you explain parts of these or any of these issues of the 69 that might not be needed or you might not work on . Yoyou know, i attract these. I just want you to know that i track them and i received this report on a regular basis. What i want to tell you is that as i dissected them again, i noted, and i think you did, that the gao stated some distant from the 80s and the 90s, and so were working through them as i mentioned some stemming from. Im doing the. In other words, i think theyre all important and vital but im prioritizing. So, for example, the disaster. The are two that were disaster oriented and we pushed those out as a bird. Im going through and sifting to make sure i am monitoring them. What did he do that we have a prioritization of basically one through 69, not these items a. And lastly we have an aging workforce in Many Industries but theres probably no more difficulty industry than the it area. We are producing about 150,000 jobs a year in software and it encoding and all of these types of positions. And it is very difficult to get them into government jobs as i understand the pain is not as good. What kind of policies, what are you pushing for so that we can get beyond 20 to 30 year olds that the uptodate i. T. , no uptodate software and you can push them into the sba . Well, thank you. I would love to have if you would give me the budget that ge has been i think those commercials are fantastic when you say youre going to go work for ge, like about your not going to work for a happy place. I feel their pain, you know what im saying . Thats what i said we are trying to reach out to peace corps types, two veteran types. Im going to more college fairs. We are traveling to the coast as well as the middle part of the state to come if you will, brent sba. I hope you felt our effort during Small Business saturday which is the weekend of thanksgiving. So i was out not just on those supporting Small Businesses but also as making sba an attractive place to work. To that end we are working through millennial channels but i just retained a typist producer and very popular gentlemen with youth, who is now doing video spots for me placing an out in different industries. I partner with anybody is willing to help me amplify the opportunities and sba. But more important to the point is that i write the correct Job Description so that were not just hiring the same people again. So thats what ive undertaken is a priority is to make sure the Job Description speak to the future. And then they come in, for example, im giving since ive limited h. R. Training budget, i give them a rotational opportunities. I give them an opportunity to be mentored and so were just trying to shake it up. I appreciate that i do know my time has expired, mr. Chair. The gentlemans time has expired. Now the gentlelady from new york and i apologize for the mixup before. Thats okay. Thank you, madam administrator, for being here today and also for all the work youve been doing him all throughout the country to there is districts, including ours in new york hearing directly from Small Businesses about the problems and concerns. I come to come ago the sentiments of my colleagues and especially ms. Lawrence in appreciating your passion, enthusiasm and great efforts while being an administrator. My question is in response to the gaos recommendation from the agency is said it is currently restricted from collecting data from Resource Partners or that the agency doesnt have adequate Information Collection systems for some programs which makes Program Evaluations difficult. Can you expand and explain how these restrictions and a lack of adequate collection systems are preventing the sba from conducting evaluations . And whatever skin congress undertake to help remove what efforts can congress undertake . I think Data Collection is fundamental and evaluation, assessments and Strategic Planning. You have to start with good data, rich data. So im pleased that in each of the outreach efforts, whether its our score partners, the sbics, just on if im using two acronyms, i apologize, i dont like the jargon i dont mean to do that. But our Resource Partners. Let me just say that they are collecting rich data, but theres a natural screen and how much they give to us. So weve reached agreement on 10 measures that we can agree on about encounters, capital formation, business starts, contracting, those kinds of things. So that data is collected and his mind and it is utilized. And so then we get quality of data can not just quantitative but we work on qualitative interactions been focused that he groups and interactions and roundtables. And with the chairman and the Ranking Member and others. But my disappointment if you will, away in which you could helping is that for me a Critical Data point would be a unique identifier. Im not trying to invade privacy. At the beginning numeric number. It to be part of the alphabet, but for me when someone says they have served 100 people in a day and then i dont know if that someone who came in twice in one day or thats 100 different people. And i think the unique identifier would be very useful in being able to track longitudinally what our actual accomplish our. So thats what a very soso looking into the ive discussed it with a Resource Partners and their beginning, i feel some are more amenable with others, with your help we can get there. And my last question is about human Capital Management. I know it was touched on a little bit from yesterdays hearing. We talked about the gao report identify challenges at the agency. One of which was the need to prioritize in the area of Human Capital. Do you agree and what is being done about that . Yes. I should have mentioned more to the point about your prior concern, is that at the agency what ive done is ive put together an interagency pyd wishon working groups of all the Program Heads are not to switch with her Resource Partners but what measures matter to them so they are also mining the corrected data and we can build proper evaluations to be more responsive to the management challenges that we are addressing here today. I wanted to speak to that. With respect to Human Capital as i mentioned, when we talk about the District Offices as the congresswoman from the islands mentioned earlier, the samoa islands, i think people because of one of the best leverage actors around, they can understand we are only fewer than 2000 employees, leveraging these kind of numbers, managing federal government, procurement process, the kinds of things we do, we do leverage up. These District Offices in many instances have five or six employees. When you cannot host a conference with 500 people who need their help, its a lot of lifting. So in any instance that we can take a search look at the structure, meaning size of sba, i think it would go a long way. Thank you. I yield back. The gentlelady yield spike. The gentleman from florida, mr. Gravelle, is recognized for five minutes. Thank you, mr. Chairman, and thank you and madam administrator for being here today. I think it also for visiting south florida last year. It was a pleasure to see you at Florida International university. I think one of the complaints most of us here most frequently about government is that its a dysfunctional, that government is incompetent, government is unaccountable. Yesterday in the gao representatives of testimony one of the things that struck me the most was that the gao perceived a breakdown in communication at the sba, that employees dont have forums in which they can express their frustrations, perhaps their views on things can be done differently. Do you perceive that theres a culture at the sba where employees dont feel that freedom to express their views to share the concerns and fisher perhaps their contributions with regards to the sba from, could be run more effectively and confidently. I have to tell you, i think communications is foundation to run an organization. And so they are informal and formal processes sometimes people can make it more by stand by the water found do anything else. We have to make sure were managing communications because not communicating does challenge an organization. Just to share with you, the systems in place, first and foremost, we start with an annual strategic meeting one time or would bring the entire Field Operations together with thats a Program Offices and we have a ful full interaction for three dissenting to set priorities and to to talk about execution and accountability and timeframe and so forth. Number two, we follow up with a weekly engagement. Im on the phone or by chief of staff on a weekly basis advocacy director and many instances the deputy district director on the phone engaging with us. On the daily basis we have the sba daily and i know its not that great name but i did say that people really are drawn to this because it tells the exact whats going on any given day with respect anything happening in sba. I visit District Offices, the Program Officers visit and held roundtables that as a team and i walked floors. On thanksgiving i was passing out tangerines. On halloween i joined them for festivities. We are informal, formal and then when we have special as the events like townhalls. So we dont wait for the week engage in that. Ive got to tell you again these are people who are fighting and in the district creating success every day. I dont see them being shot about communicating. So, madam administrator, sometimes can indication only flows from the top temperature comfortable at the agency right now theres an environment in which employees from the rankandfile to those in leadership positions can express their views, their frustrations, their joys with their superiors and really create a culture of information sharing that i think is essential for the competent functioning of any organization . You feel comfortable that culture exists today . You think there could be improvements . Deified any validity in the concerns expressed by the gao with regards to communication within the sba . If the gao stated that, somebody mustve said to him that there was a challenge, if i have to take that seriously. Theres no question about it i have to take that seriously. Again, my reality is about they step forward at townhall. Its an open town hall. I take people out to lunch and see whats going on. I walked floors and tell me how your day is going to itv news from people. Is the gao is making this comment, i will look into it, then there must be a challenge. Thank you, mr. Chairman. I yield back. The gentleman from new york, ms. Clarke, is recognized for five minutes. Very well. Thank you, mr. Chairman and i think our Ranking Member. I want to thank the administrator and just say to you that i want to thank you for a number of things. One, for being engaged on the front lines of the Small Business marketplace and being a visible change agent for Small Businesses across our nation. I can attest to the fact you have been out across this country. You in the ninth Congressional District meeting with a Small Businesses. I think that is refreshing in and of itself. You were dealing with an agency that is challenging. Theres no doubt about that, but i think you have demonstrated here today for your testimony that the passion and drive that you have for the Small Business ecosystem across our nation, and you displayed in todays hearing, in response to the challenges of a 21st century sba. I appreciate the innovative and creative approach you are taking to doing more with less. One of the things that has not been really drill down on and really struck me in this conversation today is the fact you of 2000 employees for the kind of america and its territories. When you think about the number of Small Business across this nation, you are doing a mammoth task. Certainly theres always room for improvement but what ive been impressed with today is your commitment to meeting these challenges headon. Thats critical. If, indeed, you are able to leave that legacy for whomever will be next in your shoes, that will take us a long way in making sure that the 21st century sba is meeting all of the goals that we have for Small Businesses in our communities across this nation. One thing id like to be because i think ive heard the answers i heard to date with respect to the recommendations of the gao, and i feel assured that you are paying keen attention to those recommendations is that i want to encourage you to look at how you can do more engagement with the Small Business ecosystem and u. S. Territories and the district of columbia. Strengthening them quite frankly. I just the example of puerto rico because of the challenge that were facing economically. Theres going to be a need for undergirding Small Businesses, to the extent we can be a part of helping them to stabilize just the marketplace on the ground for Small Business will go a long way as families struggle with the climate that has been created due to the challenges that puerto rico is facing overall with its economy. Having said that, if you would like to respond and thats fine. If not, go to it. Im convinced that you are focused like a laser on what needs to be done. I dont want to encourage you to keep that stride. Thank you. I yield back mr. Chairman. May i respond . Weve got a response. Go ahead. I just wanted to once againcoupled with you on the outrage that we did in your district, and i thought it was really superb so thank you for convening such a Stellar Group of people. I think you raise an important point, and that is about we have a program called the hub zone programmable program. I traveled to puerto rico to meet with the governor, to meet with the communities and local officials to understand the rate of debt that every puerto rican is assuming, you know, looms large. So it is a serious issue. I have some tools and some wanted to deploy those tools that we have. So we went there with, again, our contracting relationships. We went into sick couple of things. We want to say we are bring corporations in temperature from a Small Businesses. We want to make sure the federal government is showing up. We put on the conference of about 30 major procurers to focus on puerto rico. But i did want to stop there because for Small Businesses even with a get a contract, what happens is sometimes it takes government too long to pay. We have to look at the minutia on some of these things. In that instance we launched two programs with the white house than one is called supplier pay, which is where we say to large corporations we will pay you in two weeks to get a Small Businesses in two weeks come at a quick pay program which is with a Small Businesses in two weeks if theyre doing business with the federal government. We are now driving factor as well. Its getting thanking people the more capital and counsel to be able to grow their business. The gentlelady yield back. The gentleman from mississippi, mr. Kelley, is recognized for five minutes. Thank you, mr. Chairman. Thank you, madam administrator for being here and answering questions. I am encouraged by the fact that it seems like you want to working to fix all these things. Under encouraged by that. That being said, i found in whatever walk of life them was and the mystery, whether District Attorney and prosecute a murder case are whether the working at the craze which was a Department Store when i worked there, ive often found that priorities in a Business Plan or social import. Regardless not just for the over all but for each individual. Ive heard a lot today which event and im impressed with it. Im also very impressed and thankful and grateful for your response to mississippi to the recent tornadoes were i lost several victims lives in the district and millions of dollars of property. I hope youll keep checking on my folks and making sure that sba does all they can from the Disaster Relief in mississippi which has been declared a federal emergency. I guess my question is, how do you prioritize the 62 of the 69 gao objectives that they have . Have you prioritized those . And if so have you decided, going back to college, per cpm of those things, you can do something simultaneous, something she cant do until the other things are done. Is there a matrix org chart . In the military we called it a horse blanket. You go to college these tasks. Do you have an overall Strategic Plan that says these are the tasks, this is when we will accomplish them. Further, this is the person who asked the rose pinned on them to accomplish this and suspend deadlines or plan of action for each of those 62 that have not been accomplished . And furthermore, i. T. , youve got to get the cio hired i think in order to address the i. T. Issues are properly. And so i would encourage you do the same thing with those 30 better outstanding. If you can address what you done to do those things. Thank you. A lot was stated in that. Again, let me just say that as i mentioned earlier that i look at them, prioritized them, greater than 50 will come and start with what i think is not priority and thats one thing. Youre right, some i cannot achievement of others complete but that is my focus on the disaster. These investment fungible important, the sbics. So thats why went to the light of congress to a study and to do that so you would have confidence in research and the matrix and the measures in the evaluation. Its why we put in an Evaluation Program for six different items. And will continue to do that work. So yes, but let me just continue to share with you the process does matt atchison. I came in, i left my Small Business i agree. I left my Small Business to do something here. If its not enduring, and was the point . Im not just here to tell you about what we have done. Thats what im here in a collegial fashion because i understand the importance of institutional memory and documentation to make certain of the next person who i will be handing this to a not so many months will be able to continue on this journey. So i thank you for engagement and for your thoughtful consideration. Let me tell you i can with a whole different attitude that i have now. I think your dynamic leader and i think of some opportunities. Im trying to do some things that if you dont put in writing i can tell you as a commander if its not written, it does not have good the organization is, we can to lose that. Youve talked a lot about what you done with sops. Sop social import. From a military background we cant operate without sops. But theyve got to be current and the god active and applicable. I hear you saying you are putting 41 new sops into practice but my followup question would be to that, how many of the old sops and adjudicative sops had he taken out of action . When people are confused as to which sop, so its just as important to do away with the old as it is to enact the new. Id like to give address that or if you intend to address the duplicative or otherwise . Thank you. Again one of the less this is a somewhat a committee been. I present something. A community bank. I am in the Organization Running the below the line metrics to make sure. I understand exactly what youre talking about. To make sure like if ive got to meet a bogey of how many Sales Numbers are going to complete, anthen how makes sales calls, hw many salespeople that we have to have to manage a proper organization. I respect your training and understand it. Ive tried certification, linked to start is currently manufacturing. Ive been through so many trainings, ad nauseam. So i appreciate what youre saying and i think it is important to prioritize, to sift as i stated, to make sure were doing what matters soon, as the 80 20 rule. Thank you. The gentlemans time has expired. The gentlelady from North Carolina, ms. Adams, who is the Ranking Member of the investigations oversight and regulation subcommittee is recognized for five minutes. Thank you, mr. Chair. Thank you to our Ranking Member as well come into you, madam administrator i appreciate you being here and your testimony. Let me, im going to skip asking about the implementation of the recommendations because weve already talked about that. But arthur budgetary impediments congress can attest to assist the sba moving more expeditiously . I very much appreciate the question, because absolutely the our budgetary constraints. Im trying to be as resourceful as possible, for example, in training as i look to earlier, to travel, to have someone to travel to intimate headquarters. Have to put up a purging. Im trying to be as resourceful as i can to put a more webinars for training, to use local tools. I putting people in clusters so theyre doing mentoring. Im trying to do what i can with what i have but if you want of issues conversation about the budget. I start come in california i 14 different departments, highway patrol, dmv, department of real estate, housing. And it was a challenge to run them. I had a unique opportunity, and that is great the new department, the department of energy to do. Its still operating out as i think one of the better government run programs in the state of california. But it was entirely different thing to start with a clean slate and say this is the talent, the Core Competencies on after. This is, and so clearly when youre refining the organization, it is all the more nuanced and it is than to just start from fresh but id like to engage in the conversation because that requires a thoughtful answer that you truly deserve. Let me just turn to the issue of Program Performance evaluations. Gao found that sba has made limited progress in addressing the lack of progra program evals without evaluations as ba likes critical information for ensuring the validity and effectiveness of its goals, objectives and strategies as well as the validity and effectiveness of both new and existing programs. For example, sba has so many is conducted an annual Client Survey to evaluate effectiveness of its management and training programs. Are there any plans to through the sba loan recipients to determine if the sbas Loan Guarantee programs for meeting clients needs, and if not, why not . I can just give you an example of some of the data points we are receiving. This is a start, revenue growth, job creation and retention, capital evolution, newmarket, which ones are exporting, contracts acquired come innovation milestones, client demographics, the usefulness of the services and most important, customer satisfaction. These are metrics we are tracking. As i mentioned i am interested in a unique identifier so i can track the personal longitudinally. I think thats really a vital point. So again so thats on the specifics of our Research Partners and our public to understand what they are using it what we are also doing is to try to understand where the entrepreneurs are. So we have come understand we are in federal government space and not every entrepreneur come to my disappointment, thinks that come to sba and the federal office for entrepreneurial support. Thats what i deployed a team to go and find them in these innovation, incubators, growth accelerators that are spawning across the country. We are learning what millennials need that may be different from encore entrepreneurs that may be different from our women, veterans. Diesel market segmentations. With the advent of technological evolution we are not able to do more targeted Digital Marketing to people. Id like to have that capacity to answer your budget questions and how did this whether we are actually fulfilling the customer satisfaction. And more portly the american entrepreneurs deserved to compete in an ever evolving globalized economy. Thank you very much for your response is, and i can thank you for your service. I yield back. The gentleman from nevada, mr. Hardy amateur of the subcommittee on investigations oversight and regulations, recognized for five minutes. Thank you, mr. Chairman and thank you, administrator, for being here. I have concerns. Unconcerned about what ive read offensive but what ive heard and what ive seen. This agency is to aid, to counsel, to assist, protect Small Businesses that are vital to what this economy. Its also this post act in a manner that is efficient and nimble like our Small Businesses are. And so an agency for the fiscal year 2015 was intended to support about i think 30 billion Small Business financing, 80 billion in federal contracts. This is not only large numbers but its also concerning, yet with the key findings with serious challenges out there with this administration. This is troubling for nevada, troubling for america and troubling for the economy. Although i agree with my colleagues on the other side of the aisle just said, we have seen growth i in the economy and that you believe that the sba is a vital in that growth and has been assisted in the growth for our economy. That shows how important this department is. But with these concerns gao has complied a question from a of questions here for you. What is the Simple Impact on the spa in utilizing the old outdated sops . First question. Another question id like to go is, ask you, youve been her 20 points. Why is the average weve had, i think it is 10 administers and less than eight years. Whats going on . You know, i saw as i look at the chart, i was really intrigued by the gaos report and how far back it went. The eye appreciate that fact clear to me you must be having success were some passion with what youre doing. You have a Succession Plan for what is going on when you leave for any of your administrators leave . So what you said is sba is a valuable and Critical Organization in our country and i agree with you. When i traveled i met a young man named kevin z because of a 150,000 loan from sba he was able to build a company that sells under armour. With a little bit of help they were able to build an international qualcomm. Of that to go right to questions. To that extent i want this to be a legacy. So ive meet with sec and the Program Offices on a weekly basis to inculcate and view the entire organization into the bowels of the organization that sends priority value system that we have and you read it more important for institutional purposes and put them into Job Descriptions and performance rewards. Back to the other question on the sba utilizing the impact of Small Business on the sba utilizing the outdated recipes. Do you believe there is a major impact here . Since we have so many vehicles. Yes or no im not. Okaycommissary. As i mentioned, i am addressing them and the last few years were making Good Progress and i will continue to address that work. In your testimony you stated you require Senior Management to be directly responsible in ensuring and viewing dissemination of the sops in their jurisdiction. Can you expand on what you have asked there and also could you tell me what theyre reporting errors are because you have a report on their findings. They are required to certify the refinements. Sometimes they need a major overhaul. We have already overhauled the disaster and the sbic as i mentioned. This is the work weve been pushing. And we are doing on an undertaking than an undertaking than an unprecedented levels and we commit to reporting to you and the momentum we are building on. Indulge me. Do you have Something Real quick . I was wondering if they reported your administrators. Sure, yes. We have an organization selected the Program Offices individually and on a weekly basis in our Program Senior Staff Meetings. Thank you for your service and construction. Youre a rancher. You have a marvelous story so i was really pleased. He studied well. The administrator is not for nothing and is done the research in the chair we would note for the record, this is broadcast by cspan for the tens of dozens of people across america watching this, and sop is Standard Operating Procedure. I am sure they are all wondering what the heck that was. I will now turn to the gentleman from new jersey, mr. Paine recognized for five minutes. Thank you, mr. Chairman. To a Ranking Member, and not an administrator, once again good to see you. I had the opportunity to have you in my district for a Small Business roundtable, not necessarily with me, but with senator cory booker, but it fell in my Congressional District. We have to actually. I wont hold that against you that you were there at the senator. You got the podium for quite a while. First i want to commend you for being able to move around the country as you have done during the course of your tenure doesnt go unnoticed that you really have spread your cells far and wide across the nation in order to support Small Business suffers throughout this country. You know, there have been some issues around retention of Senior Leadership and im going over something that is 30een addressed, please forgive me. There have been 41 changes in the seniorlevel positions at the sba in the last decade. The gao reports that it gave multiple recommendations to increase Human Capital, specific way so have developed workforce plans conducted skill assessment or establish training goals. What are you doing to address the Senior Leadership and in the District Offices. Yes, continuity is important as i reference earlier, we are reconstruct in many of the Job Description to make sure they are forwardlooking. And generally the way entrepreneurship is going. And the importance of being nimble. It is an art form as well as a science to be able to be nimble of one and make sure you are following sops and all the general performance and results modernization act in jobs that 2010 and 2012 and doddfrank and sarbanesoxley and graham b. Shillelagh and make sure i am trying to be nimble and agile to the evolving emergence of entrepreneurship in the globalization of it. So it is a challenge and you want to attract the best and the brightest. I think sba is an exciting place and i must tell you, congressman, that i was disappointed because the characterization who are valid. I respect the gao, but i must tell you that each and every day they are dedicated and i think people have an appreciation when we have a District Office we are talking about half a dozen people who are managing states of challenges and lunging and local officials. These people have to be a artful and they have to be diligent and strong communicators and they have to lift up her end in opportunities through Massive Media communication efforts. So it is a very important skill set that we need and that we made him a Salary Structures are somewhat restrictive. But its government and i respect the situation. I think again we will continue to evolve the Job Descriptions to attract people to show them that work is meaningful. This study that people care about compensation, but more importantly they care about the meaningfulness of our work and i am here to remind them of that every single day. The race and anything that makes me happier than micromanage us met at the airport who said he was an aspiring doctor and he couldnt figure out how to start his business and he received a 50,000 loan from sba and became a doctor now 72 years old and served our country by providing Health Care Services to america. So do you feel the conversation levels in your department may be curtailing your ability to maintain the best and brightest . Well, i didnt intend to get into this, but the sba structure, the Salary Structure is not comparable to other cabinet officers. So i wouldve given an opportunity be happy to address that and give you a comparison analysis. In many ways it is a complex challenge. In many ways i want mobility. You want mobility and organization to create opportunities for younger folks working in. You want constant knowledge and historical framework. Again, these are delicate challenges that i address every single day and trying to do this. I actually reached at 20 00 p. M. , office of Personnel Management and to ppo to talk about how we make sure sba employees are given opportunities at treasury, at commerce, at the state department, ustr and they are now getting opportunities. That is the good news. The bad news is i now have to find new talent. Thank you very much. The gentleman from missouri, mr. Luetkemeyer, vicechairman of the committee is recognized for five minutes. Welcome not an administrator. I got in a little bit late i know you commented you at the wine to calm to misery, my home state which has experienced a weather disaster recently and we certainly welcome you to come. My only comment would be rather than spend your tenure, if you have your folks be willing to respond more quickly to our needs and concerns, that would be really appreciated because that is where it made to help. If you want to come in sick, youre more than welcome. You see a lot of water. With regards to that, what do you see happening or where do you see the sba going . What is your response to disasters happening as we sit here right now . So first let me just assure you i deployed my team even before weve been designated as a disaster under certain circumstances that have to be met. I have about 10 employees already assessing and going out and conduct in that study. As soon as we are giving we are giving the orders and are able to go, we now get there in 24 hours. Overall, as i mentioned, ive traveled now to washington to see how you responded there. I traveled to texas, North Carolina to governor nikki haley. Im trying to get out to understand the requirements they need to take place as the result, with what i think the changes. We used to send out and victims of disasters we have the technology to do it so they can track them better and give them information we are getting to be able to ploy what is supposed to be able to do the work. That is great. Next is with regard to the Disaster Response improvement not and eight years later, the bridge loans dont seem to be able to have. Why are we not implementing this . You know, is that a Program Worth having . The Financial Institutions are having a problem. They say it is hard for them to process the 10,000 loan that is not repaid by our permanent Disaster Program that we would provide beds, then they have to amortize for 10 years at a very low interest rate. Its not a Practical Program . The institutions are resisting and an eye mask and put them on the record for formal comment as to what they need to do to make them work. That doesnt work its got two choices. That is the point. We are working with them to get the answers, but meanwhile this is important that what we put in as a noncollateralized 25,000 loan that we can do directly through sba and were processing them now in seven days. So in a spirit of what we are trying to accomplish are you authorized to make direct loans . That is what the office of Disaster Assistance does. To make direct loans for people who are physically or economically affected by a disaster. So for renters as well as important to note. This is the only office that makes direct loans. Perfect. That is news to me. Last time we had a director in here and she didnt want the ability to make direct loans which was interesting. Also with regards to what is going on, all of this information youre going to be accumulating with regards to the hacks that have been happening with opm and the irs, how are you protecting your data . First, let me just assure the American People because as the chairman just mentioned, we have other people listening in. Let me just say the sba operates with Financial Institutions. They join our system until they are sure that the data is dead. That begs the question. Do you at the sba have the same protocols and the Bank Secrecy Laws and that concerns concerns protections that the banks are. We operate under the National Institute under different guidelines for similar protocols. We have a rav4 level which is the standard and government and sba is comfortable with the work we are doing. That you are not there yet. You are working toward this so you are not there. That is right. Im here to be honest with you. Does that person concerns by citizens about the protection of information . The time expired to go answer. Thank you. I appreciate that chairman. The fact the Financial Institution to review our system and audit our system give me some solace. I have an auditor who comes in to tell us and have found no material weaknesses in our system. We have a honda have a hot appreciative nonetheless mischer reprocess, for example, we have moved our mainframe to a modern this is a disclosing thought here. I appreciate what you are saying. With all this protocol is that says you are way behind on getting things done with regards to their assessment of country not been able to do everything the Standard Operating Procedure is called into question. I am not sure the citizens can have great faith in what you are saying. It concerns me but i do appreciate your willingness to work on it and your comments. Thank you, mr. Chairman. The gentlemans time has expired. I just wanted to say that i promised you launch the last time and i didnt fulfill my goal and i want you to know that you will need lunch because sba is now up and operating. We have several thousand banks that have joined us and its working. I think youll really be pleased. The cafeteria is still open. The 20 minutes before my next meeting. In all seriousness i want to think the administrator her participation today. I certainly appreciate your and your csm and your energy that you brought to this hearing. I especially appreciate your willingness to do everything within your power to implement a 62 out of 69 gao recommendations, which still need to be resolved. And as i mentioned, my greatest concern is on the i. T. Security issue because we have seen the white house for gods sake as well as a whole bunch of other federal entities hacked. Sometimes by china and they give us a lot of Sensitive Information and i appreciate your commitment to report us on a regular basis. We are willing to be reasonable to just keep us informed to get this done as quickly as possible. Mr. Chairman, the good news is sba while working on his goals is working in collaboration with our sister agencies Homeland Security with the fbi and all of the other organizations available to other government services. I want to put confidence in the system. We are working with serious Financial Institutions. I used to run the department of Motor Vehicles and i change the drivers license. As soon as you fix it there is another system that comes into hackett. This has to be an effort ongoing. I totally agree with you. Nothing brings more confidence to the American People than dealing with the department of Motor Vehicles. Thank you very much. We appreciate your testimony. Members will have five days to supplement their report and ask additional questions come et cetera. Theres no further business to come before the committee, we are adjourned. Thank you very much. The museum hosted a Panel Discussion wednesday on the oneyear anniversary of the terrorist attack on the Charlie Hebdo headquarters in paris. Journalist and First Amendment lawyers talked about what it means for freedom of the press. This is about an hour and 15 minutes. Good afternoon. I am transfer, chief operating officer and i would like to welcome you to to welcome into the night Studio Museum and