Bush Slashes SBA Budget for 6th Consecutive Year, Says American Small Business League

Thursday February 9, 8:05 am ET

PETALUMA, Calif., Feb. 9 /PRNewswire/ -- For the 6th
year in a row, President Bush has requested a budget
for the Small Business Administration that further
cuts staff and programs to benefit America's 23
million small businesses. Lawmakers on both sides of
the aisle have criticized the proposal.
Although the $624 million budget request is $31
million more than the initial request for 2006, the
budget is artificially inflated with a sizeable
allocation that was not part of this year's budget.
Taken apart, the operating budget would be $429
million, or 28% less than the initial $593 million for
2006. Moreover, the 2007 request cuts SBA staff by
24%, increases costs to borrowers for future disaster
loans, increases fees for small business loans, and
axes a number of programs including the Microloan and
Microloan Technical Assistance Programs, which serve a
large proportion of minority- and women- owned small
businesses.

Republican Olympia Snowe, chair of the Senate
Committee on Small Business & Entrepreneurship, noted
the SBA budget is only 3/100th of a percent of the
overall Federal budget, but "the SBA and its programs
have a tremendous return on investment." Snowe added,
"This steady decline to the SBA's budget could
jeopardize its ability to provide economic stimulus in
the future."

John Kerry, leading Democrat on the Senate Committee,
had this to say, "While President Bush brags about
government costs going down for the Small Business
Administration, he fails to tell the truth that
slashing Federal resources over the years raises costs
for small business owners."

The current budget cuts are consistent with rumors
that the Bush Administration intends to wind down the
SBA and reduce, if not eliminate, Federal small
business contracting programs.

"The actions of President Bush are in stark contrast
to his rhetoric. Even members of his own party are
upset by these relentless cuts," stated Lloyd Chapman,
President of the American Small Business League. "This
new budget clearly shows Bush's lack of commitment to
the businesses where most Americans work. I expect it
to have a significant negative impact on legitimately
small, women-owned, and minority-owned businesses."

Source: Yahoo News, Posted by The American Small
Business League
Contact:
Lloyd Chapman
lchapman@asbl.com
707-789-9575
http://www.asbl.com