Republicans on Capitol Hill have always wanted to cut down discretionary spending of the federal government. A letter sent by leaders of Senate Small Business Committee is really surprising for its recipient ‘Karen Mills’ who heads the Small Business Administration. The letter asked Ms Mills to cite programs within SBA that can be reduced or eliminated without underrating the SBA’s ability to serve small business owners’ needs.
In last two years, SBA received several hundred million of stimulus money. The total discretionary federal spending has risen 19 percent since 2001. In recent years, the Senate Small Business Committee leaders have sought more funding for the agency particularly after the Bush administration have cut the agency’s budget. In 2001, Congress made $674 million available to the S.B.A excluding disaster aid and earmarks. By 2006 that had fallen to $440 million. But Obama government restored the funding as S.B.A.’s appropriation now touched $687 million.
In the letter, the senators touched upon the possibility of ending ineffective, duplicate and redundant programs. The Small Business Committee is going to be a watchdog and do everything possible to cut costs and work to make SBA more effective. Obama, however, said that he is willing to spend more to encourage small businesses. That will also include micro Loans for small business. Richard Carbo, an aide to one of the committee leaders says, “the senator is not looking to cut any program that’s working or that will harm the agency in any way.”
Sam Graves, new chairman of the House Small Business Committee has also decided to see cuts in the S.B.A. Gravesin an oversight plan promises to investigate into specific administrative functions of the S.B.A. The oversight plan also targets two government guaranteed loan programs – S.B.A Express and Patriot Express.
This article was submitted by Rohit Arora, co-founder of Biz2Credit. Biz2Credit is a small business marketplace that connects entrepreneurs with financing options and advice to grow their business. Send all questions to