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[Page: H6683]  GPO's PDF
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   The SPEAKER pro tempore. Under a previous order of the House, the gentleman from Indiana (Mr. PENCE) is recognized for 5 minutes.

   Mr. PENCE. Mr. Speaker, I rise today to offer a few brief comments about the continuing impact of the events that happened on the calendar 1 month ago today. As we, each of us in our own right, dwell on the devastation of the Pentagon and at ground zero, the World Trade Center, I think it is altogether fitting that we think about the impact that the events of September 11 have had on that part of the American economy where most of Americans get up and go to work every day, and that is small business America.

   The largely rural and medium-sized city district that I serve across eastern Indiana is driven by businesses large and small, but truly by businesses that fall in the category of small business. Today I held a hearing in the Subcommittee on Regulatory Reform and Oversight of the Committee on Small Business, where I have the privilege of serving as chairman, where we took a hard look at the impact of September 11 on small businesses. What we found out from witnesses who gathered from as far away as Iowa and Maine was truly disturbing.

   The shutdown of aviation facilities known as general aviation facilities and businesses is the first place we looked for impact, and it was not a pretty picture.

   A small charter flight that leaves St. Thomas in the United States Virgin Islands for Tortola in the British Virgin Islands, some 40 miles away, and then flies to the Bahamas to return to the Virgin Islands is just one example of the regulatory burdens that are being placed on charter businesses upon which many of the businesses that I serve depend, and many smaller communities around America rely.

   Due to restrictions on general aviation in what is known as Class B air space, pilots cannot get their planes to avionic maintenance facilities, flight schools cannot provide flight instruction, and other aviation businesses are simply withering on the vine as we speak.

   According to one witness, after the immediate grounding was lifted for general aviation facilities, while business has come back, business remains at 40 percent from levels of a year ago.

   Even if the FAA removes restrictions from general aviation, the costs that they face may make it more difficult to continue. One proprietor of a general aviation business was quoted a war -risk insurance annual policy increase from $2,300 a year to $57,000 in a single year. In the airline bailout legislation, as the media has described it, wherein we rendered some $15 billion in assistance to major commercial airlines, we dealt with the issue of insurance for commercial airlines; but general aviation struggles similarly as well.

   Of course the problems are not just among general aviation and small charter facilities, but they extend to small businesses that are affected by business travel all over America.

   A travel agent from Lewiston, Maine, spoke with great emotion that despite all of the benefits that her creditors have allowed, her landlord giving her free rent for the next 3 months, she was in 3 weeks, according to her estimate, losing $4,000 a week; she was on track to lose her travel agency of 33 years' business. When I asked her how far in the future are people canceling their travel plans, she simply responded under oath, ``I cannot see that far in the future.''

   Here in Washington, D.C., hotels are facing major losses of business due to the perception that National Airport and the Capital of the United States is not open for business. One small hotel lost $100,000 due to the cancellation of World Bank events. A hotel operator was one of 25 in the D.C. area that suffered similar losses. The question remains, what will Congress do?

   Airport concessionaires also spoke of the fixed rent that they pay these small business operators, most of which come from the minority community, small business operators who have fixed rent payments at arenas and airports; and two of the over 400 airports in the United States have allowed some accommodation in the fixed rent payments of concessionaires.

   Mr. Speaker, we are about to lose a plethora of small businesses in America. As we approach an economic stimulus package, let us keep in our hearts and minds small business America, and let us remember that 50 percent of those that file in the top marginal rate are actually small businesses filing as individuals under subchapter S. Let us bring relief to small business as well.

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