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Obama Plans to Cut SBA Budget Almost in Half
The president's 2012 budget proposal slashes Small Business Administration funding by 45 percent, although the agency's 2010 total was significantly inflated because of stimulus spending.
Posted 2/ 14 11 at 3:00 PM | News, Money, Starting a Business, Taxes & Accounting, Legal Issues
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Uncle Sam's Great Recession stimulus for small businesses may soon be over. The Small Business Administration faces a 45 percent decrease in funding, as part of President Obama's 2012 proposed budget released Monday.The proposed SBA budget stands at $985 million for 2012 -- down from the $1.8 billion the SBA received in 2010, a total that was fueled in large part by $962 million in supplemental stimulus appropriations that were designed to help boost small-business loans. Those appropriations are no longer available for 2012.
Other areas slated for budget cuts include Small Business Development Centers, which provide support and mentoring to entrepreneurs, and administrative costs, including a $7 million drop in salaries and expenses.
The SBA isn't the only government department that will have to figure out how to do more with less in the 2012 budget. Overall, Obama's $3.73 trillion budget proposal makes substantial cuts to some domestic programs and freezes others, with the goal of slashing the federal deficit by $1.1 trillion over a decade.
In that context, small-business lending fares pretty well. The 2012 SBA budget allows for about $27 billion in loan guarantees, including $16.5 billion in 7(a) loan guarantees and $7.5 billion in guaranteed lending for commercial real estate development and heavy machinery purchases, as well as $1.1 billion in direct loans for disaster assistance. From fiscal 2007 to 2010, the annual amount of disaster loans for businesses and homeowners in federal disaster areas averaged $837 million.
To see the complete 2012 SBA budget proposal, click here.
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Comments (Page 2 of 4)
Obama is just a cog in the progressive machine that is mapping out the end of America as we know it and installing the One world order. This has been going on for decades, remember George Bush senior with his New World Order. It has now come to a time where the current president can accellorate spending beyond the point where the economy of America can recover. When our AAA rating is revoked we will loose default monetary status we will no longer be able to print money then and this will trigger a world wide monetary meltdown. It is mathematically certain that this will happen, unless there was an abrupt and significant change in spending actions led by Obama this will happen. Does Obama look like he is serious about doing that? Stock up on food my freinds hard times are a comming and no one will escape them.
From day one, Obama has been against supporting US small businesses- the true backbone of this nation and what created it. It angers me to hear his speeches about "job creation" when he has killed many jobs by his lack of small bsuiness support; only supporting labor unions who bought him this Presidency.
He bailed out all big banks and insurers but when CIT Group went through that special prepackaged bankruptcy 1 1/2 years ago, everyone who was a shareholder expected Obama to support CIT, because they were the largest lender to US small & mid sized business and he never did- so it went BK, wiped out all sharehodlers, and many lost jobs and many companies that depended on CIT for funding streams (like my wife's corp) also closed down and more jobs lost there in a trickle effect.
The GOP should recind the tax cut extension which they just voted to give to the top TWO PERCENT of the wealthiest Americans. That ALONE, would save EIGHTY THREE "BILLION" DOLLARS A YEAR, OVER THE NEXT TEN YEARS. That is a total of EIGHT HUNDRED AND THIRTY BILLION DOLLARS. That money is lost revenue which adds to our national debt and adds interest on top of that. The rationale of the Republicans is so far out of whack, it is laughable. They want to cut "entitlement" programs which aid the truly needy citizens, the elderly, and the infirm, BUT they believe their rich cronies are "ENTITLED" TO TAX CUTS IN THE BILLIONS OF DOLLARS, WHEN THEY ALREADY PAY FAR LESS THAN THEIR FAIR SHARE OF TAXES TO BEGIN WITH. Social Security, by the way isn't an "entitlement". We pay into that fund for decades before we can use it. Bush TOOK a large percentage of those funds to pay for his vengeance war in Iraq, or we would not be having a problem with Social Security at all.
Dumbo should cut WELFARE CHEATS.Dumbo should get rid of ILLEGAL ALIENS.that would save the tax payer OVER 100 BILLION DOLLARS A YEAR.How is that for cut backs.But obama isn't interested in helping the American people,only in destroying us all.
Does the man really know what he is doing??? One day it is this and the next?????
Of course He cuts SBA, he is for big businesses that have BIG unions!!
They can't unionize Small Businesses, accordingly He doesn't care a bout them.
The Unions thru ilegal contributions gave him 100 Million dollars to elect them; then they got back 2.5 billions for their Health trust funds @ Chrysler and GM, just for starters!!.
He can careless about the average American He claims to defend.
What can I say, He is what you people voted for! He will have a good run for a second term as we Republicans have no one to run against him. This is a very bad man in a great country. Socialism is his way and all you young college kids who voted for him will see no work and all student loans not getting paid. Go to college for 4 to 8 years and become a private sanitation worker. I only care for my children as I have been saving for them to go to college since the day they were born. Now watch this guy tax that money also. I am sorry but its time to get out in the streets and take back this country. We need a leader that we can trust.
DOUG
What a misleading Obama hate headline! You MAKE ten dollars a year. I give you an additional ten dollars for one year ( to help you) which you must claim. The next you make your usual ten dollars. I didn't cut a damn thing.
On Shepard Smiths show on Fox tonight, they said the German stock exchange is going to buy the NYSE next year, they're going to merge together. I've been wondering for two years if we were ever going to join the European Union, like Venezuela. After all, isn't that why we voted for Obama, we wanted to be more like Europe?
OBAMA IS WORKING OVERTIME TO RUIN THIS COUNTRY!!!!! PLEASE AMERICA HE DON'T LOVE AMERICANS!!!!!!!!!! GET IT !!
I have been around 66 years and this man is the anti-American. He is all smoke, mirrors and teleprompters. He has no clue what he is doing and lies at every turn. So many of the people of "color", poor and just flat out uninformed put him in and look what he is NOT doing for you. WAKE UP!!! Cutting into the middle and poor classes is what this fraud is doing. Government sticking their necks into areas they should not stands clearly out. The Repubs PLEASE need to unite behind a TRUE candidate (not Palin) and beat this horror show down to a quick end> Folks, wake up QUICKLY!
Lets tell Obama to take a long walk off a short pier. Vote the meretricious grunt out of office along with all the rest of the theiving scum in Washiton.
Business help from the SBA will go the way of the Obama... 2012 America will try to fight back the Amerikan Union, like in the nick of time. Obama is turning over the Wall Street Stock Exchange to Germany. The Amerikan Union is taking over everything. They have great pay, benefits and a retirement second to none. America needs to rise up and make a real change, cuts, caps, and rising the age limits before use needs to be done now. Leave business alone. Cuts need to be done and we all know it, well, the Obama administration has no plan. 10 years to make cuts that need to be done today, is not what the Obama administration seams to understand. In his budget he leaves out the interest paid on the debt, why? Clueless or a lie? Look it up yourself, don't trust me. When you look it up yourself, you will see much more out of balance bookkeeping. In two years; 58,000 new federal jobs with great pay, benefits, and great retirements. How are we going to ask China to keep paying for that? Debt is America's new #1 issue, and from business and job growth is the answer.
WOW!! WHAT A WODERFUL WAY TO CREATE JOBS.
Republicans again using the fear card to frighten everyone. Shame on them. WHat else can you expect from the party who gave us Richard Nixon and George Bush?
Typical AOL Republican Hate headlines. Unfortunately the knuckleheads out here only read the headline, just like reading the National Enquirer. This is not the place to read facts. These blogs were created to instill fear and hatred. Oh I forgot that's why most of you are here isn't it?
obuma has to be the biggest jerk ever to be in the WHite House. Nothing to help the private sector! All he wants to do is create jobs for the unions and government workers. If you are not in a union your are out! obuma and the unions have clearly shown that they come first even over the survival of our country! obuma should be tried for TREASON!
From the budget:
Small businesses play a vital role in job creation, economic recovery, global competitiveness, and the long-term strength of the Nation. The Small Business Administration’s (SBA) mission is to help Americans start, build, and grow businesses.
What is this administration thinking about? Certainly not the people who CREATE JOBS!
Get the hell out of Iraq and Afghanistan; we are wasting trillions of dollars in a Hell Hole. Stop billions of dollars on foreign aid, we are buying dictators, and autocrats. Stop begging to China to buy our junk bonds and start investing in our own country and we will lead the world.
Cut the budget? / cut the deficit ? / Stop sending $$$$$$$$$$$$$ over seas to other countries that end up screwing us over, and keep the $$$$$$$$$$ here for are own people and our problems. Keep the USA STRONG