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Source : House Small Business Committee
October 27, 2021
Author : Patty Rodriguez
House Small Business Committee members discussed improving the diversity of investment recipients of the Small Business Administration's Small Business Investment Company, or SBIC, as well as general problems small businesses face from supply chain issues, labor shortages and investment in rural businesses.
Ranking member Representative Daniel Meuser blasted the Biden administration for its implementation of vaccine mandates for small business with over 100 employees.
On the supply chain side, Rep. Meuser said "with holidays approaching these supply chain issues are bottlenecking and potentially jeopardizing what could be a light at the end of the tunnel for many of these small businesses."
John Mickelson, founder and managing partner at Midwest Growth Partners, was invited to testify. He commended the SBA for "critical programs" like the Payment Protection Program which helped bail out Main Street in 2020. "But now businesses are facing a new set of challenges in 2021. Our portfolio companies are facing 30 to 40 percent price increases in raw materials used to make goods and that's if they can even secure the materials at all. Supply chain constraints are having a direct impact on sales and profit margins which constrict the ability to reinvest in our business and hire more employees," he said.
"The prospect of higher taxes of all forms is delaying business decisions necessary for long-term business planning," Mickelson added.
This sentiment was echoed by other business leaders invited to give testimony.