Utah has tried to partner with the Small Business Administration but the federal agency has been “unresponsive,” Rep. Celeste Maloy said at a hearing on Wednesday.
Maloy, R-Utah, told SBA Administrator Isabel Guzman at the House Small Business Committee hearing that she shared her colleagues’ concerns about SBA’s far-reaching ambitions, like its involvement in elections, that distracts it from its mission of helping small businesses.
House Republicans have alleged the SBA diverted resources to register voters in Michigan, a swing state that will play a key role in the upcoming presidential election.
Maloy also questioned Guzman about the lack of responsiveness from the SBA toward small businesses in the Beehive State.
“Utah is a really business-friendly state, very entrepreneurial,” said Maloy, who represents the state’s 2nd District, “And our state, our state legislature, our governor’s office, worked really hard to create a business-friendly environment that fosters small businesses in Utah,” including family farms.
Utah’s small business development centers
The GOP congresswoman said Utah and the state’s Chambers of Commerce are excited to participate in small business development centers, a place where small-scale entrepreneurs and start-up founders can get equipped with business advice and technical assistance.
But, she noted, “they’re disappointed with the execution of it.” The feedback Maloy said she’s received is that the SBA isn’t responsive to the state’s needs.
“I do hear a lot from constituents about wanting to be able to hand down family farms. I hear a lot from Utahns about wanting to make sure their small business takes off, that they can support their families,” she said.
“So the state, understandably, wants to be able to monitor goals and metrics of success, annual reports, things like that, but they found the SBA unresponsive and unwilling to be a true partner.”
The GOP congresswoman argued that the goals of the state and federal governments should be aligned in Utah and asked Guzman whether she would commit to investigating this issue between the SBA and state partners.
“I’m happy to look into what’s happening with our Utah (small business development centers),” or SBDCs, Guzman responded.
She explained that states are awarded these grants and they sub-award it to multiple independent nonprofits. “In having managed the program in California and working directly with the SBDCs out there, I’m happy to provide support,” she added.
Guzman said she spoke with Gov. Spencer Cox about the need for investing in small businesses in Utah.
“Our very first accrual (small business investment company) was launched in Utah with Pelion Ventures,” the SBA administrator said.
Pelion Ventures Partners, a venture capital firm in Salt Lake City, received a $125 million contract in February this year. The Small Business Investment Companies program, launched last summer, is designed to fill the gap between available venture capital and the needs of small businesses, Guzman noted.
Maloy said she wants the federal government’s small business arm to foster growth in a way that works for Utahns. She added her staff will follow up with Guzman, and that they will work with the state to iron out these issues.