Mr. Chairman, I have an amendment at the desk. Mr. Chairman, I rise today to offer a bipartisan amendment in support of the Small Business Administration's ScaleUp program. Like many of you, one of my favorite things to do when I am back…
Mr. Chairman, I have an amendment at the desk.
Mr. Chairman, I rise today to offer a bipartisan amendment in support of the Small Business Administration's ScaleUp program. Like many of you, one of my favorite things to do when I am back home is to visit local businesses, businesses like Beech Tree Woodworks in Olympia, which just invested in some amazing new cutting-edge machinery; or Zoe Juice Bar in Olympia, which opened with just four employees not that long ago, and they now have more than a dozen, and they are still growing.
These businesses have all expanded with the help of SBA's ScaleUp program. ScaleUp is a program that gives small businesses the tools they need to become not so small anymore. It works within existing community networks to provide the education and technical assistance and access to capital that small businesses need to grow.
I include in the Record an article from my hometown newspaper which discusses the positive impact ScaleUp has had on our community.
Why Is Trump's Pro-Business Administration Hurting Businesses in
Thurston County?
(By Rolf Boone)
President Donald Trump once declared that he would be the
``greatest jobs president that God ever created.''
After a recent decision to cut a business owner training
program in Thurston County--and 14 other locations around the
country--some might question Trump's claim.
``The program was under review by the Trump Administration
and the decision was made to let the program expire in its
entirety at the end of September,'' said Melanie Norton, a
spokeswoman for the Northwest region of the U.S. Small
Business Administration.
Locally, the program was known as ScaleUp Thurston, a
multi-week course that helped businesses beyond the start-up
stage grow.
The two-year-old program was based in Lacey at the Center
for Business & Innovation, a partnership of the Thurston
Economic Development Council, its business resource center
and South Puget Sound Community College. Celia Nightingale is
the director of the center.
ScaleUp received about $200,000 a year from the SBA, she
said.
The decision to discontinue the program clearly was not
data driven because it produced results, with businesses
increasing their revenue and adding employees, Nightingale
said.
``I find it hard to believe,'' said Kevin Leneker about the
decision. Leneker is chief executive of Olympia-based Single
Handed Consulting, a vocational rehabilitation business that
helps injured workers return to work. After participating in
ScaleUp in 2016, his revenue grew 57 percent and he increased
his staff to 25 from 10.
The course taught him to step back and think bigger picture
about the future of his business.
``Work on your business, not just in it,'' he said.
Jason Phillips, owner of Zoe Juice Bar in Olympia, also
took part in ScaleUp.
Phillips said the course allowed him to fine-tune his
business systems and procedures. It also introduced him to
other business owners and the importance of networking. His
juice bar opened in December 2013, followed by a production
space for cold-pressed juice in Tumwater. His business opened
with four employees. He now has 12-14, he said.
``It's really disappointing,'' he said. ``It was a great
resource for small businesses, and small business represents
jobs and families''
``You feel like you had a friend in your corner,'' he added
about ScaleUp.
ScaleUp may have been viewed as a duplication of services
already offered by the SBA's Small Business Development
Center, Nightingale said.
Leneker praised the services of the Small Business
Development Center, but he thinks there was little overlap.
``Not even close,'' he said.
Nightingale said the current ScaleUp program will run
through Sept. 29. After that, the plan is to seek grants and
corporate sponsorships to keep it going, she said.
Perhaps the city of Lacey will step up with some funding.
Lacey City Council recently learned about ScaleUp's end
after Councilwoman Rachel Young, a small business owner who
serves on the Thurston EDC board, reported the news to a
stunned council on July 13. That led business owner and Mayor
Andy Ryder to wonder aloud about possibly funding the
program.
It wouldn't be the first time the city has stepped up when
the federal government would not. The city led the creation
and funding of the Veterans Services Center Hub.
SBA currently plans to phase out this program at the end of this fiscal year--in other words, in 17 more days. After hearing from so many people whom it has benefited, I felt compelled to offer this amendment which will provide the funding to continue ScaleUp for another year.
ScaleUp communities can be found at every corner of America: in Texas, Pennsylvania, Florida, Maine, Virginia, Ohio, Illinois, Arkansas, Tennessee, and Arizona. I thank my friend from Arizona, Ms. McSally, for working with me on this bipartisan effort.
Mr. Chairman, we are in a tough budget environment. I get that. But that makes it all the more important that we focus on programs that have been proven to be a good investment, programs like ScaleUp.
Mr. Chair, I urge the adoption of this amendment, and I reserve the balance of my time.
Mr. Chairman, the fact of the matter is that our constituents were only informed 5 short weeks ago that ScaleUp was ending in 2 months. This amendment is the only recourse available given that very short timeframe, and because evidence-based measures of ScaleUp performance are all very positive, none of us had any reason to believe that the program would not continue, and the announcement came as a complete surprise to all of us.
The fact of the matter is, I don't agree with the decision of the Small Business Administration, and it is our job as a function of our oversight and check and balance responsibility to pursue our disagreement, as it were, because their decision flies in the face of the evidence.
I would argue that the appropriation process exists so that Congress can exercise this independent oversight of the spending priorities of the executive branch and assert itself in exactly this sort of a circumstance.
Mr. Chair, I would dearly love to work with the chair of the Small Business Committee on legislation to specifically authorize the ScaleUp program, but that is a longer term issue. This program will end at the end of this month if we don't act now, taking away a very valuable program that is working--evidence, metrics, measurable. It is getting the job done.
Why wouldn't we pass this amendment, it is fully offset, there is no increased spending here, and have the existing program continue while we work on a more permanent solution.
Mr. Chair, with all due respect, I would urge my colleagues to support this amendment in the name of helping small businesses grow. Two out of every three jobs created in America are created by small businesses. This program, ScaleUp, has been proven to work. There is not one shred of evidence that has been offered here today to suggest it isn't doing the job for which it was intended to do.
Please, support this amendment, support small businesses, support your check and balance responsibility, support the creation of jobs.
Mr. Chairman, I yield back the balance of my time.