Hawkeye Reporter

WASHINGTON —  U.S. Senator Joni Ernst (R-Iowa), Ranking Member of the Senate Small Business Committee, slammed Biden’s nominee to be Deputy Administrator of the Small Business Administration (SBA) for his failure to be transparent with the committee, unwillingness to decrease burdensome regulations, and concerns about his commitment to fully recover fraudulent SBA COVID funds.

Click here towatch.

Ernst’s full remarks:

“Mr. President, I rise as the Ranking Member of the Senate Small Business Committee in opposition to the President’s nomination for Mr. Dilawar Syed to serve as the Deputy Administrator of the U.S. Small Business Administration.

“The Deputy Administrator is often referred to as the COO of the SBA, with the critical job of overseeing the day-to-day operations of the agency.

“From addressing fraud and recouping funds to improving the agency’s responsiveness, to ensuring small businesses are not drowning in unnecessary red tape, there is a lot of work that needs to be done to improve the SBA’s most basic functions.

“Unfortunately, following Mr. Syed’s appearance before the Small Business Committee, I do not believe that he is the right person for the job.

“This nomination was delayed last Congress due to the nominee’s failure to voluntarily disclose his company’s PPP and EIDL loans from the SBA. 

“As the nominee to help lead the Agency responsible for small business pandemic relief funding, I believe Mr. Syed should have been forthcoming in disclosing his interest in an SBA program. 

“Unfortunately, there were false statements and errors in the applications and disclosures signed by Mr. Syed on behalf of his company, which further delayed the Committee’s consideration of his nomination. 

“The lack of transparency and the resistance in providing requested information to the Committee does not inspire confidence that he will be transparent and forthcoming with Congress about the SBA’s programs and ongoing challenges. 

“Based on the track record of this nominee, it is not clear he would reverse the SBA’s failure to give Committee members details on key policy matters squarely in the Committee’s jurisdiction. 

“The Agency’s continued lack of responsiveness under the Biden Administration is a key part of why I stand before you in opposition of this nomination.

“I recently questioned Mr. Syed on whether he believes that overregulation stifles innovation and entrepreneurship – he could not give me a direct answer.

“This is unacceptable to Iowa’s entrepreneurs who are struggling in Biden’s economy and drowning in ever-changing regulations.

“As I’m crisscrossing Iowa, small businesses continuously list Washington red tape and regulation as a top issue keeping them from growing and in too many cases, simply surviving.

“I’m not convinced Mr. Syed is ready and willing to change the SBA’s culture and bring much-needed accountability to the agency.

“It is estimated by the investigative community that there is more than $100 billion in suspected fraud in PPP and EIDL.

“Addressing this abuse by holding individuals accountable and recovering taxpayer dollars provided to ineligible businesses must be a top priority for this agency. 

“I have received commitments from Mr. Syed that he would make every effort on fraud recovery and prevention. He also informed me that he believed SBA Administrator Guzman is prioritizing fraud prevention.

“But the reality is -- the SBA decided not to pursue borrowers with unpaid loans less than $100,000, giving them a free pass.

“Should Syed be confirmed, I will hold him accountable to his commitment and ensure that the agency is taking a larger role in administrative recoveries

“Further, should Mr. Syed be confirmed, I urge him to do all he can to protect the integrity of the 7(a) loan program at all costs.

“Recently, the SBA finalized two lending rules that, if not addressed, would pose serious risks to the long-term health of SBA’s lending programs, create predatory underwriting standards, and enable the same fintech companies that were responsible for fueling rampant PPP fraud to participate in this critical program. This, too, is unacceptable.

“I joined Chairman Cardin, House Small Business Chairman Roger Williams, and Ranking Member Velazquez in asking the SBA to pause on implementation of these proposed rules until a permanent leader was in place for the Office of Capital Access.  The Administrator didn’t even have the courtesy to respond to our letter before plowing ahead and opening up the application period for new fintech firms. 

“Based on our experience with Mr. Syed over the past two and a half years while his nomination has been under consideration, he has resisted full transparency at every turn. Unfortunately, all evidence suggests that he will just be more of the same ongoing problem as part of the leadership team at the SBA.”

Original source can be found here.