WASHINGTON - House Small Business Committee Chairman Steve Chabot (R-OH) made the following statement on the resignation of Wells Fargo CEO John G. Stumpf:
“Mr. Stumpf’s resignation is a first step but there are countless more steps Wells Fargo must take to correct the damage their employees did to millions of Americans by creating fraudulent accounts in their names without their permission. The egregious nature of these actions cannot be overstated. The next step should be for Wells Fargo to fully respond to our Committee’s formal request for detailed information about how this scandal impacted their small business customers.”
BACKGROUND: Earlier this month, Chairman Chabot sent letters to Wells Fargo and the Small Business Administration (SBA) requesting detailed information about the scandal’s impact on small businesses. You can read the Chairman’s letters HERE.
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WASHINGTON, D.C. –Today’s issue brief, Minority Business Ownership: Data from the 2012 Survey of Business Owners by Regulatory Economist Michael McManus, analyzes the data collected from minority business owners through the Census 2012 Survey of Business Owners. After taking a closer look at the five years enveloping the economic recession, McManus discovered that minority-owned businesses helped keep the US economy alive despite traditional setbacks.
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WASHINGTON —Small Business Committee Chairman Steve Chabot (R-Ohio) today announced that the Committee’s newest Member, Congressman Warren Davidson (R-Ohio) has been named to the Small Business Committee’s Subcommittee on Economic Growth, Tax and Capital Access and the Subcommittee on Investigations, Oversight and Regulations.
Chairman Chabot said, “Ohio has one of the most remarkable small business stories in the country, and Congressman Davidson and his family have been a part of that story. I’m proud to have my neighbor from the Eighth District on the Small Business Committee, and I know he’ll make invaluable contributions to these two subcommittees.”Congressman Davidson said, “There is probably no clearer way to achieving the American Dream than starting your own small business. After over 15 years building and growing small businesses, I’m excited about the opportunity to take what I learned and apply it to helping more Americans and Ohioans realize their own American Dream. America’s best days are ahead. I have no doubt that small businesses will be a major driver as we achieve this brighter future.”
Small Businesses May Have Been Penalized for Accounts They Never Opened
Wells Fargo is the single largest participant in SBA’s 7(a) Guarantee Loan Program, including the SBA Express Program, which enables many small businesses to access the capital they need to start and grow their businesses. Additionally, the banking company provides lending as a part of SBA’s Certified Development Company/504 Loan Program, and even serves as the Central Servicing Agent for the SBA 504 Loan Program.
“The egregious nature of these actions cannot be overstated,” said Chairman Chabot in his letter to Stumpf. “When Americans deposit their hard-earned paychecks into their bank, they deserve nothing less than the peace of mind of knowing that their deposits will not be fraudulently manipulated solely for the financial gain of the bank or its employees. By allowing these actions to go on, Wells Fargo failed its customers.”
“As a partner with SBA in these programs, Wells Fargo has the ability to help small business owners access needed capital to start and grow their businesses. This cannot happen, however, if customers are not able to trust their bank to properly manage their accounts,” Chabot noted.
“The Committee is committed to ensuring that small businesses are given the opportunity to grow and thrive through access to capital,” Chairman Chabot wrote in his letter to Administrator Contreras-Sweet. “Part of this goal is ensuring that the SBA programs are properly administered and protected against fraudulent activity, and we are eager to work with SBA to this end. As we await response from Wells Fargo, we request that you provide the Committee any information regarding Wells Fargo’s participation in SBA programs.”
Chabot requested responses from both Wells Fargo and the SBA no later than October 19, 2016
WASHINGTON –House Small Business Committee leaders followed up today after the Federal Communications Commission (FCC) failed to respond to their bipartisan concerns about the impact of new proposed broadband regulations on America’s small businesses.
The Committee wrote to FCC Chairman Tom Wheeler in August requesting answers about the negative economic impact of new FCC privacy proposals on small Broadband Internet Access Service (BIAS) providers.
As noted in the letter, the FCC has failed to fully or adequately comply with the Regulatory Flexibility Act. This lack of compliance has left many small businesses confused and frustrated as they try to understand how the FCC’s proposed regulations will affect their businesses.
The Committee requested a response from Wheeler and the FCC no later than September 8, 2016 and as of October 3, 2016, they have received no such reply.
You can view the original letter HERE.
You can view today’s follow-up letter HERE.
WASHINGTON – Members of the House Small Business Committee have joined together to lead the introduction of a bipartisan House resolution to recognize the Saturday after Thanksgiving, November 26th, as “Small Business Saturday.”
“America’s small businesses, entrepreneurs, and innovators need to be assured that we are fighting on their behalf, and that they have a voice in Washington.” Small Business Committee Chairman Steve Chabot (R-OH) said. “Support for America’s small businesses reaches beyond partisan lines and consistently reaches across the aisle. I thank Ranking Member Velázquez for her support for this bipartisan resolution to inspire all Americans to ‘shop small’ on November 26th."
“Entrepreneurship is a cornerstone of the American economy and it is critical we work together to help our small businesses succeed," Small Business Committee Ranking Member Nydia M. Velázquez (D-NY) said. "I am proud to work with Chairman Chabot in introducing this legislation that recognizes Small Business Saturday and encourages Americans to shop at the Main Street businesses that make this nation great.”
The resolution, H. Res. 886, notes that there are over 28 million small businesses in the United States which:
- Represent 99.7 percent of all businesses with employees
- Employ over 48 percent of private sector employees
- Pay over 42 percent of the total private sector payroll
- Constitute 98 percent of firms exporting goods
- Created 63 percent of net new jobs over the past two decades