First Job of House Small Business Committee: Avoid Another Shutdown

By Jennifer Mangone, WIPP Government Relations

Despite the 116^thCongress being sworn in on January 3^rd, the partial government shutdown caused a delay in getting things moving on the Committee front. So, it was no surprise that the House Small Business Committee’s first hearing of 2019 was entitled “The Shutdown: Economic Impact on Small Businesses.”

There’s always a buzz of excitement in the Committee room at the beginning of a new Congress and the environment for today’s hearing was no exception. In her new role (but not first time) as Chair, Nydia Velazquez (D-NY) got right down to business, introducing her colleagues, new and old, on the Committee, including Ranking Member (and former Chair) Steve Chabot (R-OH), stressing the importance of the bipartisanship the House Small Business Committee is known for, and introducing the witnesses who would be testifying.

The stories of four witnesses on the government shutdown impact on the nation’s small businesses, were delivered to a standing room only crowd. The robust witness list included Dr. Matthew Shapiro, Professor of Economics at the University of Michigan; Bill Butcher, founder of Port City Brewing Company; Heidi Gerding, CEO of HeiTech Services, Inc.; and Charles “Tee” Rowe, President and CEO of America’s Small Business Development Centers.

The hearing testimony and questioning centered primarily around the shutdown impact on SBA Lending and Entrepreneurial Development Programs, unforeseen consequences for small businesses all throughout the supply chain, and last, but certainly not least – the impact on small business federal contractors.

Heidi Gerding, CEO of HeiTech Services, Inc., a company that works solely on government contracts, testified at length about the unique situation a government closure places on contractors. She described the time and effort it takes to recruit new workers on a government contract, and stressed the importance of remembering that contractors, unlike federal employees, are not necessarily guaranteed backpay. She described how in the first three weeks of the shutdown, she allowed her employees to take unpaid leave before deciding to take a profit detriment for her company and reinstate their pay. Gerding ended her testimony by saying, “Don’t forget government contractors.”

The Small Business Committee members of the 116^th Congress listened carefully throughout the hour and a half long hearing. While there are many differences of opinion on how to avoid shutdowns in the future, and on how to prevent the government from lapsing into another on February 15, one thing is clear: the stories of impact on small businesses are real and no one wants to go through this again. The impact from the last is already too great.

You can view the written witness testimony and watch a recording of the hearing here.