While many federal agencies will take a haircut in thThe Small Business Administration has emerged from the negotiations largely intact from Federal budget cuts.
If you are a small business owner, you may be pleased to learn that the Small Business Administration (SBA) dodged the budget-bullet last week. Despite bantering about a number of potential cuts, in the end, House and Senate negotiators agreed to restore the SBA appropriation to $433 million.
The compromise spending bill includes a cut of 7 to 8 percent on total non-military discretionary spending. The SBA emerged, however, largely intact. Also, the business loan guarantee programs, which are financed through a separate account, also retained its 2010 funding of $236 million.
Short-term, it looks like the SBA is still in business (in pun intended). But budget cuts and debt-reduction remain hot political topics. The Republican House already has made its intents known, suggesting cuts of $100 million from the SBA. President Obama also proposes to strip $28 million from the agency for 2012.
If you were thinking of turning to the SBA for assistance in expanding your small business, you may be well-advised to move sooner rather than later.
Tags: 2011 budget, SBA loan guarantee program, Small Business Administration, small business financing, small business loan