Good morning, Mr. Chairman, Senator Kerry, and members of this Committee. Thank you for the opportunity to appear before you today as the nominee for Deputy Administrator of the U.S. Small Business Administration. I am honored that President Clinton has asked me to serve in this post.

I am enthusiastic about the opportunity to serve at the SBA. More than 23 million Americans own small businesses. The spirit of entrepreneurship has made this country strong and prosperous. The SBA exists to aid and support this immense engine of growth for our economy and to help all Americans turn their dreams into businesses that create jobs and build communities.

I have been very fortunate in my business career - and I very much would like to have the opportunity to serve the public - to give something back to the country that has given so much to my family.

I come from a family of immigrants. My mother, at age 6, fled Nazi Germany with her family. Her brother, for whom I was named, became an American citizen and then died for our country in 1944 fighting the Nazis. My father's parents came here from Poland in the early part of this century seeking a better life. My parents believed in and taught me the importance of a strong work ethic, and of playing by the rules. They both worked very hard to make their small businesses succeed.

I am happy that my mother is here today. I only wish my father, who passed away last year, could be here as well. He was a small businessman for his entire career, and certainly helped prepare me for my potential role at the SBA.

As a businessman, I hope to bring a valuable perspective to SBA policy-making. With more than 20 years of business experience, I believe I can help to strengthen the management of the SBA consistent with the goal of Administrator Aida Alvarez -- to turn the organization into a leading edge financial institution ready for the 21^st century.

Mr. Chairman, I come to this nomination with personal knowledge of what it takes to run a small business. I have worked most of my adult life in my family's business, the Lillian Vernon Company. The Lillian Vernon story is an American success story.

The roots of Lillian Vernon are modest. The company began in 1951, capitalized with $2,000 from my parent's wedding. My mother placed an advertisement in the magazine Seventeen for her two first products, a personalized pocketbook and matching belt.

I started working for the company as a youngster. I would come home from school; help open the mail; roll the quarters, dimes and nickels; and count the singles. Millions of small businesses begin this way. Lillian Vernon was no exception.

I formally joined the business after receiving my Masters in Business Administration from Columbia University. I was the only college graduate at the company at that time.

Banks didn't lend money in those days to small businesses like ours. In fact, for some years to come banks did not lend to businesses like ours. I remember a time in 1978, when our banker revoked a commitment letter to us, largely because a business run by a woman and her son was not deemed creditworthy.

I had a major hand in growing Lillian Vernon from a company that used manual systems and typewriters into one that today is a highly sophisticated international mail order company.

I had to master all facets of running the business, including marketing and finance, human resources, operations and distribution, customer relations and information technology. I also managed the complex transition of a family-run business into a publicly held corporation. From the time I joined, Lillian Vernon grew :

• from 60 employees to more than 1, 400;
• from $6 million in sales to about $250 million.
• Today, it serves more than 5 million customers nationwide.

Lillian Vernon is a small business success story in another important way. We made a special effort to seek out small companies that served only local markets. It was smart business for us -- we were able to offer many unique products to our customers. We, in turn, gave their products national distribution. As a result, we helped many mom-and-pop operations stay in business and grow.

I understand what American entrepreneurs put into their enterprises: the seven-day weeks, the hard work and the sweat equity- because that's where I come from. I intend to bring these values to my work at the SBA.

One of the greatest challenges the SBA faces -- and, with this Committee's approval, that I will face -- is to help America's small businesses succeed in the 21^st century. Our economy is becoming increasingly competitive and global, but it is still America's small businesses that provide local jobs and local activity.

I believe I can add value to the SBA. The President has chosen me, as a pragmatic businessman, to support his vision. The President cares deeply about America's small businesses, and I am honored that he has asked me to help.

I have much to learn and I am anxious to get started. I hope that this Committee will support my nomination. Mr. Chairman, Members of the Committee, I pledge to you that, if confirmed, I will engage in honest and open communication with the Committee throughout my tenure at the SBA. Together, we can work to create more opportunities for small businesses.

Thank you.