[chicagomom]

- Reduced SBA budget by a quarter (the biggest percentage cut of any federal agency)

- eliminating funding for 7(a) loan guarantee program, which provides capital to small businesses. It has become increasingly difficult for small business owners to get loans with all the banking consolidation, and the 7(a) program is essential to helping small businesses get their footing.

- Is ignoring government mandates that a certain percentage of government contracts go to small businesses.

- eliminating SBA microloan program

http://democrats.senate.gov/~dpc/pubs/108-2-063.html

Guess big business is the only real real winner in this economy.

 

[sleeping queen]

Quote:

"Every dollar lent under the program cost the taxpayers ninety-seven cents," Hector V. Barreto, Administrator of the SBA, said in a statement to a House Appropriations Committee on March 25. The SBA claims that loans handled by the Microloan program can be handled in the future by other programs like the SBA's 7(a) program, which relies on commercial lenders.

http://www.inc.com/criticalnews/arti...icroloans.html

 

[TiredX2]

From SQs link:

Quote:

"Many of the recipients of Microloan programs would not qualify for 7(A) loans and often get turned down by commercial lenders because they are considered high risk or because the loan amounts they seek are considered too small. If the Microloan program is terminated, these individuals will simply be denied help."

"Living History" (HRC's autobiography) emphasized the life-changing ability of micro-loans. Why the US would want to limit them, in any way, within this country is beyond me. They are one of the most practical paths towards self-sufficiency available.

 

[chicagomom]

Quote:

Originally Posted by sleeping queen The SBA claims that loans handled by the Microloan program can be handled in the future by other programs like the SBA's 7(a) program, which relies on commercial lenders.

You mean the 7(a) program that Bush is proposing cutting by $79 million for fiscal year 2005? The one that is already so cash strapped it ran out of funds and had to shut down in January?

Quote:

For the Microloan program, there is no other program that can fill this gap. This program caters to low-income or unemployed entrepreneurs, moving these individuals from welfare to business ownership. A typical Microloan borrower wouldn't qualify for bank financing, due to a poor credit history, lack of collateral, or lack of business training. Therefore, it is absurd to think that bank-based programs will compensate for the Microloan program," Velázquez said. "These programs provide our nation's small businesses with access to capital, and technical assistance. Small businesses create three out of four new net jobs -- they are the main job creator and without these programs, these small businesses and entrepreneurs cannot create the jobs that we so desperately need right now," Velázquez said. Small businesses also account for just over half of U.S. gross domestic product (GDP); and contribute roughly 42 percent of tax receipts to the U.S. Treasury, according to the House Small Business Committee.

http://www.upi.com/view.cfm?StoryID=...5-113444-8896r

 

[chicagomom]

More on Bush and small business:

- One of the first things Bush did when elected was to demote the head of the SBA from the Presidential cabinet, which is mostly made up of representatives of big business

- In 2001, Bush sought to reduce the SBA budget by 40%, and cut by $144.5 million the loan guarantee program. Only bipartisan support in Congress saved it. He has since repeated these proposed cuts every year.

- According to a Bureau of the Census working paper, start-ups in the first two years of operation accounted for virtually all of the net new jobs in the economy. Almost all of these use some sort of financing or credit.

- Bush has significantly reduced the number of small business contracts to government, and has ignored in many cases the federally mandated requirement that a certain percentage of government contracts go to small businesses.

- This year, the SBA has, under Bush, proposed increasing the definition of 'small business' from companies with 500 employees to those with 1,500 employees. Why is this important? A 1,500 person company has many, many more resources than a 500 person company. Such a change could essentially eliminate all small business loans in favor of loans to 'more stable' big companies. Under intense pressure from small business and minority business groups, the decision has been temporarily tabled, but it will no doubt return.

In sum, Bush talks favorably about small business when it suits him, but his policies tell a different story, one that favors big business.