SBA Spared In Initial Budget Battles
Written by Jenna Weiner
Despite fears of massive cuts, the SBA will only see 0.2 percent less funding.
The battle over the budget has been a consistent feature of small business finance news, as owners wait to see how their access to loans and federal help will be affected.
However, while most nonmilitary spending will be slashed by 7 to 8 percent from 2010 levels, the U.S. Small Business Administration is only seeing its budget diminish by 0.2 percent and was relatively spared from deeper cuts that are set to affect other programs, the New York Times reports.
As a result of a House vote in February that cut $25 million - approximately 6 percent - from the SBA's budget, which funds small business development centers nationwide and similar counseling grants, companies were beginning to predict even tighter lending in the future.
Ultimately, the House and Senate rescinded the initial cut, restoring $433 million in funding to the SBA. Additionally, the money the agency channels towards its business loan guarantee programs will remain at $236 million.
The fight isn't over yet, though, as Republicans continue to take aim at spending. House Small Business Committee Chairman Representative Sam Graves, Republican of Missouri, suggested that the government cut funding to the SBA by $100 million in 2012.
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