Graves, who stepped into the position in 2009, will hand over the gavel in keeping with self-imposed six-year term limits for House Republicans. He will move to the House Armed Services Committee in January, at which time he will be replaced atop the small-business committee by Rep. Steve Chabot (Ohio), the panel’s most senior Republican.
During his tenure, Graves has spent a considerable amount of time crafting legislation intended to steer more federal contracts to small businesses, remove onerous regulations for employers and improve access to capital for entrepreneurs looking to start or grow a company. Additionally, he and other members of the panel have repeatedly pushed the Small Business Administration, over which the committee has oversight responsibility, to rethink many of its programs aimed at supporting entrepreneurs.
In our interview, Graves discussed the lessons he learned over the past six years, the most pressing issues for small businesses and his hopes for the committee moving forward. What follows is a transcript of our interview, lightly edited for clarity.
Looking back, what are the key takeaways from your time as chairman?
First, I think we made the committee very relevant in a variety of ways, including an aggressive hearing schedule and bringing in some high-profile witnesses to testify. We’ve also leveraged the Regulatory Flexibility Act and forced the administration to do their due diligence on some of the regulations they have put in place, and we have pushed through some contracting reforms that I think are monumental.
What were some of your proudest moments over the last six years?
Well, we succeeded on the first long-term Small Business Innovation Research reauthorization in 11 years — that was a huge accomplishment. I also think the 1099 repeal in the Affordable Care Act [reducing a number of reporting requirements for businesses] was a big deal, too. While that one was outside our jurisdiction, our committee really pushed the issue and made it important, and we tried to do that with several other issues.
What were some of the areas your learned the most about?
Learning how different parts of the country and different types of companies face different problems with regard to access to capital and the financing they need. For example, with service-based businesses, it’s really hard for them to break into business and find the capital they need right now, and I think we did some good work trying to make improvements there.
Do you think it’s easier or harder to start a business now than when you stepped in?
When I came in as chairman, we were at the height of the recession, and it was really hard. I think it’s a little bit easier now for start-ups and small businesses, because we’re starting to see banks get hungry again. When I took over, they were completely shut down.
I mean, the economy fluctuates, it’s cyclical, and we’re starting to see that upward turn again. So I think it’s easier today than it was a few years ago, but it could be much easier.
What should the committee’s priorities be moving forward?
The biggest thing is to continue to increase the percentage of federal contracts going to small businesses. We finally saw the government’s 23 percent goal met last year [the first time agencies have met their annual statutory goal since 2005] , and I think that’s something we can continue to work on.
I think the regulatory reform is important, too, particularly with this administration. We have to continue to flex that muscle and push back on some of these regulations that are just over-the-top for small businesses.
On the contracting front, what specific proposals do you think could help funnel more federal work to small businesses?
Easy. Increasing that annual percentage goal from 23 percent to 25 percent will probably do more than anything. Increasing the current subcontracting goal, as well, that would help. That’s something we have worked on for a long time and we have to keep pushing.
In working closely with the SBA, do you think the agency is heading in the right direction? Where are the areas for improvement?
I definitely think the committee can continue to work with them to try to eliminate some of the hoops you have to jump through. Too often, small business owners get frustrated and they just give up and quit the process.
I have talked to the new administrator, Maria Contreras-Sweet, and I know she’s aware of that and they are working on solutions. But they really have to streamline some of their processes, because there are just too many entrepreneurs who just give up.
Do you have any advice for your successor, congressman Chabot?
The most important thing is just to listen to the small businesses out there. One of the things we did was launch our Reg Watch portal on the committee Web site [where employers can comment about the effects of federal rules], which has helped us learn about some of the egregious regulations that are out there. In many cases, Washington doesn’t have all the answers. I know Chairman Chabot knows this, but you have to listen.
More broadly, with the bitter political gridlock right now on the Hill, how do we get Congress working again? Might these small-business issues be an area where the two parties can find some common ground?
Absolutely. I mentioned earlier about the SBIR reauthorization, and that’s an example where Sen. Mary Landrieu [a Democrat and then-chair of the Senate Small Business and Entrepreneurship Committee] and I, despite being from different political backgrounds, were able to come to an agreement and move that program forward.
I think small business cuts through the partisanship, and it’s a perfect opportunity for us to show some real leadership and move things forward.
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