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2018年7月2日 星期一

Hillicon Valley: Foreign spying comes under new scrutiny | How Yelp became a political weapon | NYC weighs minimum wage for Uber, Lyft drivers | Facebook apologizes for privacy bug

 
 
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Welcome to Hillicon Valley, The Hill's newsletter detailing all you need to know about the tech and cyber news from Capitol Hill to Silicon Valley.

Welcome! Follow the cyber team, Olivia Beavers (@olivia_beavers) and Morgan Chalfant (@mchalfant16), and the tech team, Harper Neidig (@hneidig) and Ali Breland (@alibreland).

 

NEW WORRIES OVER FOREIGN SPYING: Washington policymakers are growing increasingly worried about the threat of high-tech foreign surveillance, a development complicated by U.S. spy agencies' use of similar technologies.

Lawmakers are stepping up their demands for more information from the Trump administration about foreign efforts to spy on Americans' cellphones.

How? The Senate last week passed a spending bill with a measure directing the Pentagon to disclose mobile device spying near U.S. military facilities.

And an annual intelligence community authorization bill moving through the upper chamber would force intelligence officials to report on whether vulnerabilities in the global telecommunications system enable foreign surveillance.

Background: The developments reflect growing concern about the use of International Mobile Subscriber Identity catchers, commonly known as "Stingrays." The spying devices mimic real cell towers, tricking mobile devices into sharing location data and in some cases communications.

The issue is clouded in sensitivity, given that U.S. law enforcement and intelligence agencies themselves use the technology.

Police have used Stingrays to track suspects and privacy advocates have long argued there should be more restrictions on their use.

But concerns about the threat to national security have heightened since April, when the Department of Homeland Security acknowledged possible unauthorized Stingray activity in Washington, D.C., last year, including around sensitive facilities like the White House.

Read more on the controversy here.

 

YELP AS ONLINE WEAPON: Yelp is becoming a surprising weapon in the online war between liberal activists and those on the right.

Both sides are increasingly using the website to score points in a number of political and cultural controversies.

The most recent incident came after White House press secretary Sarah Huckabee Sanders was denied service at The Red Hen, a restaurant in Lexington, Va., because of the Trump administration's immigration policies.

Appalled conservatives quickly flocked to Yelp, a website that allows the public to comment and rate businesses, and overwhelmed the restaurant's page with negative reviews. Some online trolls even posted swastikas and pornography to deface the page.

The restaurant's rating took a serious hit, dropping from just under five stars all the way down to its current one-star rating.

Conservative personality Charlie Kirk also seized on the controversy, urging his over 600,000 Twitter followers to leave "another 100,000 [negative] reviews" on The Red Hen's page.

Earlier this month, right-wing activists took similar action against MXDC, a Mexican restaurant in Washington, D.C.

Protesters opposing the Trump administration's policy of separating children from their families caught illegally crossing the border confronted Homeland Security Secretary Kirstjen Nielsen, who was dining at the restaurant.

The protesters chanted slogans until Nielsen eventually left. The confrontation was caught on camera and quickly went viral.

The online anger spilled over from Yelp to similar sites, such as TripAdvisor, which froze its reviews of the restaurant. Google's own restaurant review page also appeared to temporarily block users from leaving reviews.

While other websites have experienced this problem, Yelp has been the focal point in many of the controversies. In both cases, Yelp began stepping up its monitoring of The Red Hen and MXDC's pages and actively moderating posts and reviews.

Yelp's surprisingly zen answer about this: "Some people are going to make a decision about where they will patronize based on a number of factors," Yelp's SVP of communications said. "Including the business's beliefs and politics."

Things might get rough, though: "I don't know the numbers on Yelp, but if they're having engagement issues, and if this becomes a way that people can engage that isn't provided by other platforms then it could enrich the experience of Yelp," Karen North, a professor at the University of Southern California's Annenberg School for Communication and Journalism, said.

"But if it's too polarizing and political for an audience that's looking for restaurant rankings then it may detract from the user experience."

Read the full story here.

 

FACEBOOK DETAILS USER DATA SHARING: Facebook revealed to Congress late Friday that it shared user data with 52 hardware and software-making companies, including some Chinese firms.

The new acknowledgement came as part of a more than 700-page document dump to the House Energy and Commerce Committee late Friday evening. The committee released the information publicly on Saturday.

Some companies on the list of 52 firms had previously been reported by The New York Times, including device-makers, telecommunications companies and software firms.

The list featured major tech companies like Apple, Amazon, BlackBerry and Samsung. Other firms featured on the list include Alibaba, Qualcomm and Pantech.

But the list also includes four Chinese firms that U.S. intelligence has flagged as national security threats -- Huawei, Lenovo, Oppo and TCL.

Facebook's explanation: Facebook said it shared data with the companies in an effort to improve its integrations and user experience across platforms and devices, noting that its partnerships were established before smartphones running on Apple's and Google's high-powered operating systems were as ubiquitous as they are now.  

More on Facebook's disclosures here.

 

UBER, LYFT DRIVERS IN NYC MAY BE SEEING A RAISE SOON: New York City's Taxi and Limousine Commission (TLC) will be considering a minimum wage for drivers for companies like Lyft and Uber after a new study recommended that they be paid at least $17.22 an hour.

For independent contractors, which is how app economy drivers are classified, the recommendation amounts to a $15 minimum wage plus paid time off.

"The standard would ensure that drivers' overall pay provides for all vehicle expenses as well as a fair amount for the drivers' time and also some paid time off," wrote economists James Parrott of The New School and Michael Reich of the University of California, Berkeley.

Some key findings in the study: Two-thirds of the drivers in the city for the ride-hailing apps rely exclusively on driving for their income, and 85 percent make less than the recommended minimum.

Those in the 85 percent, an estimated 50,000 drivers, would see a 22.5 percent annual net pay increase, an average of $6,345 a year.

Parrott and Reich also found that 90 percent of app drivers are immigrants. According to the economists, 40 percent of drivers have incomes low enough to qualify them for Medicare.

Read more on the study here.

 

TRUMP SAYS HE'LL BROACH ELECTION INTERFERENCE IN PUTIN MEET: Trump plans to bring up Russia's efforts to meddle in U.S. elections when he meets with Russian President Vladimir Putin next month.

Speaking to reporters aboard Air Force One on Friday, Trump said that Russia's interference in Ukraine and its role in Syria will be on the agenda when he meets with Putin on July 16 and that Moscow's interference in U.S. elections will be a key topic.

"We don't want anyone tampering with elections," he told reporters en route to Bedminster, N.J., for the weekend.

The president's remarks came a day after he once again cast doubt on the U.S. intelligence community's conclusion that Moscow sought to meddle in the 2016 presidential election, noting in a tweet that Russia still insists that it did no such thing. Read more here.

Remember ... The topic previously came up between the two leaders at a meeting on the sidelines of the Asia-Pacific Economic Cooperation Economic Leaders' Meeting in Vietnam last November.

Trump weathered criticism after he indicated that he believed Putin when he said Russia didn't meddle in the election. Trump later clarified his remarks, saying he believes "in our intel agencies" who assessed that Moscow interfered in the election.

White House press secretary Sarah Sanders was subsequently asked on Monday whether Trump would raise the issue of potential Russian interference in the midterm elections. Sanders said at the afternoon briefing that she wouldn't "get ahead of the president's conversations," but added that she would keep reporters updated on the issue. Sanders also would not say whether Trump and Putin would discuss sanctions in response to Moscow's election meddling.

 

THE MUELLER FILES: WILL COHEN FLIP? NEW INTERVIEW RAISES THE BIG QUESTION: Michael Cohen has legal tongues wagging in a new interview in which he appears to give the signal that he could flip on President Trump and cooperate with special counsel Robert Mueller's investigation.

Cohen, the longtime personal lawyer and "fixer" to Trump, once professed that he would "take a bullet for the president." But in an interview released Monday by ABC News, he appeared to be singing a different tune.

"My wife, my daughter and my son have my first loyalty and always will," Cohen told ABC's George Stephanopoulos.

More significant, legal analysts say, is the revelation that Cohen has withdrawn from a joint defense agreement with the president. This suggests that his new lawyer, Guy Petrillo, believes that Cohen's and Trump's interests are no longer aligned.

Ending the agreement doesn't mean Cohen has "flipped," but his withdrawal is perhaps the most concrete symbol that he is weighing either pleading guilty or cooperating with prosecutors, say legal experts.  

"Short of a posting on Ebay, Cohen could not be more clear in his pitch to Mueller," said Jonathan Turley, a George Washington University law professor and contributor to The Hill. "It was abundantly clear that he used this interview to remove any doubts as to his willingness to cooperate with Mueller."

We've got the latest on Cohen here.

 

PUSH TO MODERNIZE GOVERNMENT WEBSITES: A pair of bipartisan lawmakers is pushing for Congress to take action to modernize federal government websites.

"While this problem isn't new, it's been far exasperated by emerging technologies like mobile payment apps and digital appointment booking services that people now use every day to pay their bills or make dinner reservations," Reps. John Ratcliffe (R-Texas) and Ro Khanna (D-Calif.) wrote in an op-ed for Wired published over the weekend.

"For years, the federal government has been playing catch-up with the private sector to adopt online services that become quickly outdated, leading to failures like the IRS' website crash on Tax Day this year," they wrote.

 

NEW FIGHT OVER CALIFORNIA PRIVACY BILL: The tech industry is mobilizing against a new California privacy law, likely the toughest in the country.

The California Consumer Privacy Act was rushed through the state legislature, where it was approved unanimously, and quickly signed by Gov. Jerry Brown (D).

The new law requires websites to show users what data is collected on them, what the data will be used for and to identify third parties who have been given access to the data. Internet users will also have the right to opt out of having their data collected and sold and to request that their information be deleted.

It is one of the most comprehensive privacy laws passed in the U.S. and comes after the European Union implemented a set of data privacy regulations that cracked down on data collection practices.

But the law, which doesn't take effect until 2020, is now the center of a new fight as the tech industry pushes for changes.

We have more on the fight here.

 

FACEBOOK REVEALS BUG THAT UNBLOCKED USERS: A bug affecting 800,000 Facebook users briefly unblocked people they had barred from contacting them, the company revealed Monday.

Erin Egan, Facebook's chief privacy officer, wrote in a blog post that the social network would start notifying the affected users.

"We know that the ability to block someone is important -- and we'd like to apologize and explain what happened," Egan wrote.

 

TECH WORKERS PUT PRESSURE ON CEOS TO DROP CONTRACTS: Technology companies are facing a new crisis as their employees press executives to rethink their work with the Trump administration and in many cases drop lucrative federal contracts.

The controversy comes amid heated national debates on immigration, law enforcement and surveillance -- issues on which Silicon Valley's workforce wants the industry to take a stand.

In the past month, workers at Google, Microsoft, Amazon and Salesforce have organized and written letters calling on CEOs to cancel or review contracts with government agencies whose work the employees say raises ethical questions.

The groundswell of opposition to many industry practices and projects is forcing executives to revisit their work, a marked shift in how they operate.

There were rumblings before: IBM workers organized against their CEO Ginni Rometty being a member of Trump's advisory board. Recent actions are among the most serious though. Workers are demanding that corporations drop lucrative government contracts that could lead to even more lucrative contracts, and in the case of Google's Project Maven contract with the Pentagon, they're winning.

More here.

 

MAN CHARGED WITH THREATENING FCC CHAIR: A California man was arrested by FBI agents on Friday on charges of threatening to kill Federal Communications Commission (FCC) Chairman Ajit Pai's family.

The man, according to a release from the Justice Department (DOJ), made the threats because of Pai's role in repealing net neutrality protections.

Markara Man, 33, of Norwalk, Calif., allegedly sent three threatening emails to accounts operated by Pai last December, around the time the FCC voted to repeal net neutrality rules put in place under the Obama administration.

 

A LIGHTER CLICK: Rep. Devin Nunes (R-Calif.) hates taxes more than he likes good basketball.

 

AN OP-ED TO CHEW ON: How ransomware democratized cyber weapons, warfare.

 

NOTABLE LINKS FROM AROUND THE WEB:

Home Depot is trying to stiff-arm Amazon's plays at dominating online home improvement shopping. (WSJ)

In Seattle, people hate Jeff Bezos but not Bill Gates. (AP)

Want peace of mind? Bring back away messages. (WSJ)

Tech elites are bringing Burning Man to their living rooms.  (NYT)

The Guardian does some fun visuals showing just how much tech companies upcharge cities in forgone taxes in exchange for jobs. (The Guardian)

Best Buy says goodbye to CD sales. (CBS)

Cybersecurity company Tenable files to become a publicly traded company. (CyberScoop)

Trump is considering an executive order to prevent U.S., foreign telecom deals. (The Washington Post)

The military has submitted a formal proposal for a cyber weapons platform. (Fifth Domain)

Amazon workers are afraid to take bathroom breaks. (Seattle Times)

 
 
 
 
 
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Overnight Energy: Rhode Island sues oil companies over climate change | Senate GOP seeks to overhaul endangered species law | Conservatives object to greenhouse gas treaty

 
 
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THE OCEAN STATE VS. BIG OIL: Rhode Island's attorney general sued a dozen oil and natural gas companies and their affiliates Monday in state court, accusing them of causing climate change and not sufficiently mitigating its effects.

Attorney General Peter Kilmartin (D) said Rhode Island is uniquely harmed by global warming, with its more than 400 miles of shoreline, fishing industry, marine economy and other factors.

"Rhode Island is especially vulnerable to the effects of climate changes that is now on our doorstep with sea level rise and an increase in severe weather patterns, as seen by the extensive damage caused by storms in the past several years, including Super Storm Sandy and the floods of 2010," Kilmartin said in a statement.

"The defendants' actions for the past several decades are already having and will continue to have a significant and detrimental impact on our infrastructure, economy, public health, and our eco-systems, and will force the state to divert already-limited resources to mitigate the effects of climate change, thereby diminishing resources for other vital programs and services."

Who the suit targets: The defendants in the lawsuit include big companies across the petroleum supply chain, including Exxon Mobil Corp., Chevron Corp., ConocoPhillips Co., Marathon Oil Corp. and Hess Corp.

Industry responds: The National Association of Manufacturers said such a lawsuit isn't productive.

"It's time for politicians and trial lawyers to put an end to this frivolous litigation," said Lindsey de la Torre, executive director of the group's Manufacturers' Accountability Project.

"Taxpayer resources should not be used for baseless lawsuits that are designed to enrich trial lawyers and grab headlines for politicians. This abuse of our legal system does nothing to advance meaningful solutions, which manufacturers are focused on every day."

What happens now: It's anybody's guess how the lawsuit will play out, but the recent record of climate lawsuits by governments against fossil fuel companies is not good.

Just last month, a federal judge dismissed similar claims by San Francisco and Oakland, Calif., against major oil companies. Judge William Alsup said the science of climate change and its link to fossil fuels is solid, but it's not a place for the courts to get involved.

Read more.

 

Happy Monday! Welcome to Overnight Energy, The Hill's roundup of the latest energy and environment news.

Please send tips and comments to Timothy Cama, tcama@thehill.com, and Miranda Green, mgreen@thehill.com. Follow us on Twitter: @Timothy_Cama, @mirandacgreen, @thehill.

 

BARRASSO LAYS OUT PLAN TO OVERHAUL ENDANGERED SPECIES ACT: Sen. John Barrasso (R-Wyo.) embarking on an ambitious effort to overhaul the Endangered Species Act (ESA).

Draft legislation released Monday by the Environment and Public Works Committee chairman would give new powers and responsibilities for state officials to determine how animals and plants should be protected.

The GOP contends that its goal is not to weaken protections, but to take advantage of the experience of state regulators.

"When it comes to the Endangered Species Act, the status quo is not good enough," Barrasso said in a statement to The Hill in advance of the unveiling. "We must do more than just keep listed species on life support -- we need to see them recovered. This draft legislation will increase state and local input and improve transparency in the listing process."

Conservationists, however, say the new bill represents the most significant threat in years to the 44-year-old law, which has been credited with rescuing the bald eagle, gray wolf and grizzly bear from possible extinction.

"It's a bill which, on a broad basis, rewrites the ESA, with a whole host of consequences -- as far as we can tell, almost entirely adverse consequences -- for the protection of species," said Bob Dreher, senior vice president for conservation programs at Defenders of Wildlife.

Dreher and other critics fear the effort would tilt the balance too far toward industries while de-emphasizing the role of the Fish and Wildlife Service and the National Marine Fisheries Service.

"This bill is all about politics. It's not about science. It's especially not about better ways to conserve endangered species," he continued. "It's a partisan bill."

Read more.

 

CONSERVATIVE GROUPS ARGUE AGAINST CLIMATE CHANGE AGREEMENT: Over 20 national and state conservative groups are urging the Trump administration to reject an international agreement that aims to fix climate change by limiting the use of a chemical commonly found in refrigerators.

In a letter sent Monday to President Trump, the groups, including the Competitive Enterprise Institute (CEI) and Heritage Action asked Trump to pull the U.S. out of an Obama-era agreement known as the Kigali Amendment to the Montreal Protocol, which aims to reduce emissions of global warming-causing hydrofluorocarbons used as a refrigerant.

The groups argued that the agreement would increase the cost to U.S. consumers, saying it "would impose restrictions on production of the affordable refrigerants currently used in most types of air conditioning and refrigeration units and necessitate their likely replacement with more expensive alternatives."

The letter added: "The result would be higher costs for households, motorists, and businesses that rely on air conditioning and refrigeration."

The Obama administration and environmentalists alike championed the United Nations treaty negotiated in 2016, which was created to help countries meet the emissions standards put forth in the Paris climate agreement. One hundred and seventy countries signed onto the agreement, which scientists expected could on its own help prevent a nearly 1 degree rise in temperatures by 2100.

On the other hand: Big businesses, including the U.S. refrigerator industry, are also supportive of the agreement, urging the Trump administration to stay committed to the deal because of the business potential of new regulations.

The industry hopes to convince the administration that staying in will create U.S. jobs due to the fact that the country is a leader in refrigerant products and the pact will likely drive new demand for their expertise globally.

Read more on the debate here.

 

OUTSIDE THE BELTWAY:

Production volumes for Tesla's Model 3 jumped in the second quarter, and the company hit its goal of putting out 5,000 in one week, the San Francisco Chronicle reports.

The South Carolina Electric & Gas Co. is suing state regulators to stop them from slashing electricity rates, which was meant to cut off the additional funding the utility got for a failed nuclear project, The State reports.

Authorities arrested a Danish man and accused him of starting a recent Colorado wildfire, Reuters reports.

 

IN CASE YOU MISSED IT:

Check out stories from Monday and the weekend ...

-Rhode Island sues oil companies over climate change

-Top conservative groups urge Trump to reject climate change agreement

-Senate GOP seeks overhaul of Endangered Species Act

-Seattle plastic straw, utensil ban takes effect

-EPA's chief ethics officer recommends investigations into Pruitt allegations: reports

 
 
 
 
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On The Money: Ross downplays US leaving WTO | Why Trump isn't talking a lot about the stock market now | Trump takes aim at EU on trade

 
 
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Happy Monday and welcome back to On The Money, unless this newsletter has melted by the time it got to your inbox. I'm Sylvan Lane, and here's your nightly guide to everything affecting your bills, bank account and bottom line.

See something I missed? Let me know at slane@thehill.com or tweet me @SylvanLane. And if you like your newsletter, you can subscribe to it here: http://bit.ly/1NxxW2N.

Write us with tips, suggestions and news: slane@thehill.com, vneedham@thehill.com, njagoda@thehill.com and nelis@thehill.com. Follow us on Twitter @SylvanLane, @VickofTheHill, @NJagoda and @NivElis.

 

THE BIG DEAL: President Trump's threat to try to pull the U.S. out of the World Trade Organization isn't getting much support, even from within his own administration. Commerce Secretary Wilbur Ross said Monday the U.S. is not planning an imminent departure from the WTO despite Trump's frustrations with the global body.

Ross said it is "little premature" to talk about withdrawing from the WTO, which has delivered regular trade victories to the United States.

"We've made no secret of our view that there are some reforms needed at the WTO," Ross said in a CNBC "Squawk Box" interview.

He said that WTO members have acknowledged that reforms are needed. The Hill's Vicki Needham explains here.

On Sunday, Axios reported that the White House has drafted a bill that would allow Trump to skirt Congress and WTO rules on trade, giving him the power to raise tariffs and set different rates for member countries with little to no oversight, running afoul of long-established global trade rules.

That proposal, dubbed the U.S. Fair and Reciprocal Tariff Act, has been largely dismissed by Republicans for both its purpose and name, which some critics abbreviated to the "FART" Act.

What comes next: The legislation stands little chance of passing on Capitol Hill, where support for the WTO has remained strong.

Congress gets a chance to vote every five years on whether to stay in the group. No votes were taken in 2010 or 2015 and the next possible vote wouldn't be held until 2020.

Trump has railed against the WTO saying the United States hasn't been "treated fairly" and that the trading group is a "catastrophe" and a "disaster for us."

He has said that China's 2001 entry into the global body facilitated the greatest "job theft in the history of our country."

 

LEADING THE DAY

Ross says stock market drops won't influence Trump on trade: Commerce Secretary Wilbur Ross on Monday said President Trump won't shift his trade policies based on stock market fluctuations.

The Trump administration has levied billions in tariffs on close allies and trading partners in the past few months, raising the specter of an all-out trade war. Those economic partners are now punching back with retaliatory tariffs that could cause job losses and damage the nation's vibrant economy.

"There's no bright line level of the stock market that's going to change policy," Ross told CNBC.

"You have to make policy based on what's fundamentally good for the economy, what's fundamentally good for the long-term," he said. "You can't deal just with day-to-day stock market fluctuation." The Hill's Vicki Needham has more on that here.

 

Global markets have also swooned over the past month as trade tensions between the U.S. and key economic allies increase. The European Union, Canada, and Mexico have all imposed retaliatory tariffs on U.S. exports, and more could come if Trump follows through with threats of further levies.

Trump and his top economic aides spent most of 2017 bragging about the torrid stock market. But the recent bout of volatility has stunted the president's mentions of equity values.

During his first full year in office, Trump tweeted the phrase "stock market" 46 times, almost once a week.

Since Jan. 26, when the market topped out at 2,872 and headed into a correction, Trump has only tweeted about it twice. The switch makes sense, and The Hill's Niv Elis tells us why here.



Trade headlines from the weekend:

  • President Trump on Sunday refused to back down on his administration's tariffs against U.S. allies, arguing that the European Union is "as bad as China" in its trade policies.
  • Canada announced Sunday that it has moved forward with retaliatory measures against U.S. steel and aluminum tariffs, slapping $13 billion in its own tariffs on American exports.
  • President Trump said Sunday that the U.S. will "absolutely" sanction European companies that do business with Iran.



MARKET CHECK: U.S. stocks closed just above the breakeven mark Monday. The Dow Jones Industrial Average closed 0.15 percent higher. The Nasdaq rose 0.76 percent, while the S&P 500 added 0.31 percent.

 

GOOD TO KNOW

  • Technology companies are facing a new crisis as their employees press executives to rethink their work with the Trump administration and in many cases drop lucrative federal contracts.
  • The Federal Reserve is facing several tough decisions about how to wind down its massive portfolio of bonds.
  • Congress' efforts to block Trump for peeling back limits on ZTE is fizzling, according to Bloomberg.
  • A lender owned by a private equity firm managed by former Treasury Secretary Tim Geithner is under fire for questionable and potentially predatory marketing practices, according to The Washington Post.
  • Op-Ed: Elise Gould, senior economist at the Economic Policy Institute, writes for The Hill on whether the UN report on U.S. poverty is a dystopian future or devastating reality?
  • The European Commission issued a stark warning to the U.S. regarding Trump's plan to slap tariffs on European cars, saying the move would harm the U.S. economy, according to Politico.
  • A federal investigation into Facebook's sharing of data with political consultancy Cambridge Analytica has broadened to focus on the actions and statements of the tech giant and involves three agencies, including the Securities and Exchange Commission, according to The Washington Post.

 

ODDS AND ENDS



Join us Wednesday, July 11, for "Latino Entrepreneurship & The American Dream," featuring Reps. Carlos Curbelo (R-Fla.)Jenniffer González-Colón (R-P.R.), and Adriano Espaillat (D-N.Y.). Topics of discussion include what leaders in government and industry are doing to support Latino entrepreneurs and how barriers related to lending, training, and growth can be eliminated We will also explore the role mentoring can play in empowering Hispanic small business owners. RSVP Here.

 
 
 
 
 
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