After six years at the helm, Rep. Sam Graves will step down as
chairman of the House Small Business Committee at the end of the year.
And while he’s proud of what the panel has accomplished during his
tenure, the Missouri Republican says the committee has some important
unfinished business to wrap up under his successor.
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.
