The House Committee on Small Business held a hearing on July 22 to review the performance and oversight of the U.S. Small Business Administration’s Office of Entrepreneurial Development, focusing on how it provides counseling, training, and technical assistance to entrepreneurs and evaluates recent modernization efforts.
Chairman Roger Williams said, “America’s entrepreneurs rarely succeed alone—they need trusted guidance, practical tools, and partners who understand the challenges they face. The U.S. Small Business Administration’s Office of Entrepreneurial Development and its nationwide network of resource partners help small businesses start, grow, and compete. Under the Biden administration, outdated systems and a lack of accountability left taxpayer dollars vulnerable. Under Administrator Loeffler’s leadership, the SBA is cleaning up that mess by modernizing these programs, strengthening oversight, and safeguarding every taxpayer dollar so it can deliver for Main Street businesses.”
During the hearing, Williams asked about top priorities for improving program performance within OED while reducing administrative burdens. Mr. Fitzpatrick responded: “Under Administrator Loeffler, we have some major overarching priorities at SBA when it comes to specific industries. We are talking about manufacturing, we are talking about food supply, and we are talking about actually areas, rural communities… And so what we’re working to do is align the resource partners’ efforts with those priorities… But we’re also encouraging those organizations…to raise funds from other sources…not relying just on federal dollars in these public-private partnerships…And the other thing we’re doing is…we see the most effective help for small businesses when there’s an ecosystem of resource partners that are collaborating…And finally…we are working with underperforming centers to help them get up to speed, and if not then we will move them out of the program.”
Rep. Alford raised concerns over $340 million in unpaid grant obligations inherited from previous administrations: “As Chair of the Oversight Subcommittee I was really disturbed with the SBA’s recent discovery of roughly 340 million dollars in unpaid grant obligations that you basically inherited from the previous administration.” Fitzpatrick replied: “When we arrived … just in Women’s Business Center program … That program … went back five years … at least 12 million dollars … So there were about fifteen hundred payments in that 340 million dollars but I don’t know details but I have to assume four or five years.” When asked if more issues were being discovered as reviews continued, he said: “Yes sir yes.”
Rep. Ellzey questioned how integrating STEP grants under OED would reduce duplication; Fitzpatrick answered: “Remember Administrator Loeffler is a business person … what we’re doing is frankly bringing groups together like groups that have similar functions … Now they’re being cross-trained so they can surge when there is a demand.”