Proposed federal budget curbs SBA funding

Filed under Economy, News digest

President Barack Obama’s proposed $3.7 trillion budget allocates fewer dollars for small business spending, CNNMoney reported. While stimulus programs bolstered small business lending in 2010, look for a return to more modest appropriations for the U.S. Small Business Administration and its network of Small Business Development Centers, the article said. The fiscal 2012 proposal includes $985 million in SBA funding, down from $993 million proposed for fiscal 2011 and a 45 percent drop from $1.8 billion in fiscal 2010, when stimulus funding doubled the agency’s core budget of $824 million. Last month the Senate Small Business and Entrepreneurship Committee sent letters to Karen Mills, SBA administrator, and Peg Gustafson, agency inspector general, asking which programs might be more responsive to cuts, Government Executive reported. Now the SBA says $10 million in funding for Small Business Development Centers will likely be cut, CNNMoney reported.

— Hallie Busta

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