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Federal Market Intelligence for Small Business |
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Carranza confirmed for SBAPriorities to include cybersecurity, helping underservedThe Small Business Administration has a new administrator, Jovita Carranza, who was confirmed by the Senate on Jan. 7. The Senate voted 88-5 to approve the nomination, filling the SBA’s top leadership post that had been vacant for more than eight months since the departure of Linda McMahon in April, 2019. Carranza, age 70, most recently served as U.S. Treasurer, and previously was the deputy administrator of the SBA under President George W. Bush. She also had a long career in the private sector including senior roles at UPS. Carranza outlined some of her priorities for the SBA in a December hearing of the Senate Committee on Small Business and Entrepreneurship. Under questioning from senators on the panel, Carranza touched on several topics of concern, including small business contracting, access to capital and technical assistance for entrepreneurs, cybersecurity, “SCORE” and the Small Business Innovation Research Program. Underserved Entrepreneurs In her brief opening statement at the hearing, Carranza emphasized her commitment to assisting striving small business owners. “I am passionate about empowering entrepreneurs of all backgrounds and ethnicities, with the guidance and support needed to achieve success,” Carranza said at the hearing. “I intend to put particular emphasis on opening more doors for women and for entrepreneurs in underserved communities, including military families and veterans,” she said. “And I intend to prioritize disaster preparedness.” Small business federal contracting While Sen. Ben Cardin, D-MD, in his opening statement, said one of his top two concerns at the SBA is about the falling numbers of small business federal vendors in recent years, he did not ask Carranza to comment on that topic at the hearing. There was very limited discussion about the topic. Sen. Jeanne Shaheen, D-NH, said it was her understanding that Carranza had had previous discussions with senators regarding agencies’ commitment to meet small business contracting goals. “It’s a topic that I’ve discussed with several of the senators,” Carranza agreed. Cybersecurity Responding to Sen. Maria Cantwell, D-WA, regarding small business cybersecurity needs, Carranza said small firms not only need help to raise their awareness of cyber threats, but also need funds for cybersecurity infrastructures, including systems, services, devices and software. “Small businesses don’t think that they will be victims,” Sen. Jacky Rosen, D-NV, said at the hearing. She said 60% of the small businesses that are victims of cyber attacks go out of business within six months. SCORE Sen. Chris Coons, D-DE, expressed concerns about the SBA’s Service Corps of Retired Executives (SCORE) program, which recently was criticized by the SBA’s Office of Inspector General for lax accounting and other shortcomings. SCORE brings together retired business managers to mentor small business owners. Carranza said SCORE is an important pillar in SBA’s resource network, which also includes Small Business Development Centers and Women’s Business Centers. “I’m very impressed with the entire infrastructure and services they (SCORE) provide, with more than 10,000 volunteers,” she said. 7(a) loan fees Several senators were unhappy with the SBA’s plan to raise fees for 7(a) small business loans. Carranza said she would examine the issue closely. “I believe that access to capital is always going to be a deficiency and a need and we should be able to provide the best financing,” she said at the hearing. Sen. Cardin, D-MD, ranking Democrat on the committee, noted that the 7(a) program has a less successful record in delivering loans to underserved people, including blacks, Hispanics, women and veterans. He asked Carranza if she would support making permanent the SBA’s Community Advantage loan program, which has a better track record of loans to those communities. She replied that she would look into it. SBIR and Small Business Technology Transfer programs Sen. Ed. Markey, D-MA, said his state has received $350 million in SBIR grants in the last year and the program has been “central to the growth of the Massachusetts economy.” He asked Carranza if she would support permanent authorization of the program, which has been operated under 14 temporary authorizations. Markey also notedt that SBA lacks enforcement tools to ensure that other agencies follow through on their SBIR commitments. Carranza said she would review and analyze the SBIR and STTR programs once confirmed. More information: Hearing: https://bit.ly/2TdP2dp
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