Small Business Startup News
California Budget Problems Threaten Small Business Program
Written by Jenna Weiner
California's budgetary issues may threaten a critical small business development program that relies on state funds.
Small business officials say that ongoing budgetary problems in the State of California are threatening to derail a small business development program, according to the Los Angeles Times.
Officials from the Small Business Administration told the Times that state funding - which is used in combination with federal funds for the program - is set to expire next month unless the governor and legislators agree on an extension.
The paper says that the program mainly supports small business development centers, which give entrepreneurs tips on how to better market and position their businesses and apply for small business loans.
Anticipating a reduction in funding, many centers are already cutting back their services - which is not welcome news for entrepreneurs. Officials told the Times that the centers will have to rely on private funding to stay open.
The state's budget problems are nothing new. Last year the state resorted to giving many of its vendors IOUs because it didn't have enough cash on hand to pay them. San Francisco's KGO-TV reports that the state is considering restarting the IOU program again this year if a state budget isn't approved by August.
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