[Congressional Record Volume 169, Number 99 (Wednesday, June 7, 2023)]
[Senate]
[Page S1991]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]



                       Nomination of Dilawar Syed

  Ms. ERNST. Mr. President, I rise today as the ranking member of the 
Senate's 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 redtape, 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 
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 do 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 nominee.
  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 am crisscrossing Iowa, small businesses continuously 
list Washington redtape and regulation as a top issue keeping them from 
growing and, in too many cases, simply surviving.

  I am 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 that 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 today, 
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 2\1/2\ 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.
  I suggest the absence of a quorum.
  The PRESIDING OFFICER. The clerk will call the roll.
  The legislative clerk proceeded to call the roll.
  Mr. SCHUMER. I ask unanimous consent that the order for the quorum 
call be rescinded.
  The PRESIDING OFFICER. Without objection, it is so ordered.