Virtual Hearing – Small Business, Big Impact: Ensuring Small and Minority-owned… (EventID=114430)

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On Thursday, February 17, 2021, at 3:00 p.m. (ET) Consumer Protection and Financial Institutions Subcommittee Chairman Perlmutter and Ranking Member Luetkemeyer will host a hybrid hearing entitled, “Small Business, Big Impact: Ensuring Small and Minority-owned Businesses Share in the Economic Recovery.”

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Witnesses for this one-panel hearing will be:

• Marla Bilonick, President and CEO, National Association for Latino Community Asset Builders (NALCAB)
• Stephanie DeVane, Vice President for Entrepreneurship & Business Development, National Urban League
• Amber Littlejohn, Executive Director, Minority Cannabis Business Association (MCBA)
• Dr. Alicia Robb, Founder and CEO, Next Wave Impact
• Dane Stangler, Director of Strategic Initiatives, Bipartisan Policy Center

Overview

Nearly two years into the COVID-19 pandemic, the economy is recovering in many ways: the
unemployment rate fell from a high of 14.7 percent in April 2020 to 4 percent in January 2022; Gross Domestic Product (GDP) grew at 6.9 percent in the fourth quarter of 2021, outpacing most expectations; and new business formation hit a new record of 5.4 million in 2021, with some analysts predicting another record year in 2022.

However, many businesses continue to face challenges due to supply chain
disruptions, changes in consumer behavior, workforce shortages, inflation, and other factors, particularly in the wake of the Omicron variant.3 Studies have shown that the pandemic and related economic disruptions have disproportionally affected the smallest businesses and women- and minority-owned firms.
Additionally, many federal small business relief programs were difficult for such firms to access.

Access to affordable credit on fair and transparent terms, basic financial products like bank
accounts, and other financial services, are critical not only for small businesses’ survival through the current economic volatility, but to enable them to share in the economic recovery. Small businesses also often need technical assistance and support to fully utilize the financial resources they have access to. However, some small businesses, especially minority-owned businesses, have difficulty accessing financial products and services. Moreover, small business borrowers do not have many of the protections consumers have with respect to financial products and services they receive, such as disclosures required under the Truth in Lending Act (TILA).8 This hearing will examine the availability of credit, potential gaps in legal protections for small business borrowers, discrimination, credit reporting, and debt collection. Additionally, the hearing will review market transparency, including demographic data collection and reporting, and financial challenges small businesses face as the pandemic persists, including assessing the impact of various short and long-term federal relief and support programs.

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Hearing page:

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