At House Small Business Hearing, Ranking Member Chu and Pasadena-based Space Technology Small Business Owner Discuss Current Economic Landscape in America

WASHINGTON, D.C. — Today, during a House Committee on Small Business hearing on “Main Street Realities: Examining the Current Economic Landscape in America”, Rep. Judy Chu (CA-28) served as Ranking Member and invited Tom McCarthy, Vice President and Co-Founder of Motiv Space Systems, based in Pasadena, CA, to testify.

Click here to watch the hearing in full.

Click here to watch Rep. Chu’s opening statement, as delivered, and introduction of Tom McCarthy, or read below.

Click here to watch Mr. McCarthy’s opening remarks.

Click here to watch Rep. Chu’s questioning of Mr. McCarthy.

Thank you, Mr. Chairman, for this important opportunity to discuss the realities of our economy and hear from those who do incredible work directly in the communities we represent. Hearings like this one allow us to take stock of how our efforts in Congress affect those on Main Street. 

Four years ago, small businesses had to navigate an unprecedented array of challenges stemming from the COVID-19 pandemic, from public health shutdowns, to supply chain disruptions, labor shortages, and rising costs. Yet, despite these obstacles, small businesses have demonstrated extraordinary resilience.  

Obstacles remain, but our strong economic headline numbers clearly show slowing inflation, low unemployment, and sustained growth.

Looking around, there is much to be proud of: We’ve seen a remarkable surge in small business creation since 2020, reversing decades of decline. It’s become clear: this isn’t just an anomaly due to the pandemic – it is a trend that is continuing even today, four years later.

This durable small business boom shows that so many Americans still have hope for the future, and trust that we are moving in the right direction. The ripples of the current startup boom will reverberate for decades, delivering wealth creation for families, opportunities for workers, and economic development for communities across the country.

This is especially significant because many who have historically been underrepresented in the business community, including women and minority business owners, are the ones who disproportionately powering this small business boom and reaping the broad benefits delivered when we build the economy from the bottom up and the middle out. 

The resilience in our economy continues to overcome headwinds primarily because of investments made by the Democratic Congress and the Biden-Harris Administration over the past several years.

This transformational fiscal policy started with the American Rescue Plan, which played a critical role in stabilizing our economy during the pandemic. By extending support to small businesses and providing direct stimulus to American families, we kept millions of businesses afloat, all while providing relief to the unemployed and cutting childhood poverty in half through the expanded Child Tax Credit. 

This was complemented by historic bipartisan legislation when we passed the Infrastructure Investment and Jobs Act and the CHIPS and Science Act, two landmark laws that are providing long-term investments to strengthen our supply chains, rebuild our country’s road and bridges, and lay the foundation for a more resilient and inclusive economy. These investments are supporting the growth and flourishing of small firms and new startups. 

Finally, Democrats and the Biden-Harris Administration passed the Inflation Reduction Act, which included the largest ever investment in fighting climate change and provisions to further incentivize domestic manufacturing and lower costs for everything from health care to electricity.

While there is no doubt these laws will provide a boost for small firms into the foreseeable future, there is still much more to be done.

Access to capital remains a challenge, and the high cost of borrowing poses a long-term threat to small businesses. In this high interest rate environment, SBA’s capital access programs are especially important for connecting small businesses to affordable financing.

Additionally, the government can continue to do more to incentivize innovation, from reversing disastrous provisions of the Tax Cuts and Jobs Act to extending our core SBA programs, including SBIR and STTR.

Finally, investments in families will continue to strengthen small businesses. Whether it’s the expanded Child Tax Credit, or continued investments in childcare, these actions could help build a more sustainable and resilient business environment while delivering for American families.

It’s crucial that we continue to support these businesses through thoughtful legislation. While the accomplishments of Democrats in Congress and the Biden-Harris Administration have provided a strong foundation, we must continue to build on this progress, ensuring that small businesses can thrive in a stable and supportive economic environment.

Thank you, and I look forward to our discussion today.

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I am so honored to introduce our final witness today, my constituent Tom McCarthy, the co-founder and Vice President of Business Development at Motiv Space Systems in Pasadena. Tom spent 11 years at NASA’s JPL, located in my district, as an electronics engineer designing motion control systems for rovers and robotic systems for extreme environments. He then spent four years as the director of business development at the Missile Defense Agency before co-founding Motiv in 2014.

Motiv was founded on the belief that space-based robotics systems could be produced more efficiently, and with a higher level of quality, by a small business. And they were quickly proven right. They earned and successfully executed a range of contracts at NASA, including designing the robotic arm used on the Mars 2020 Perseverance rover. They are also the recipients of several SBIR awards from the SBA, and are using that investment to innovate the next generation of space exploration.

Thank you for joining us, Mr. McCarthy.