Rabbi Set To Open D.C.'s Second Medical Marijuana Dispensary
Happy Memorial Day! 1 In 4 U.S. Workers Get No Vacation, Report Finds
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
Text Size:
A A A
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.
Getty Images
- 'Marriage Penalty' Could Make Costly Return - CNNMoney
- Oil Rises on Optimism for Cliff Deal - FOXBusiness
- Dow 2012: The Studs and Duds - InvestorPlace
- Turning the Corner: Why 2012 Wasn't as Bad as You Think - The Motley Fool
- World’s Longest High-Speed Rail Line Unveiled In China - IBTimes
- FORGET THE DEFICIT: Here's The Real Reason Liberals Want To Hike Taxes On The Rich - Business Insider
- CEOs to Fire in 2013 - 24/7 Wall St.
- DailyFinance Market Minute - DailyFinance
Comments (Page 4 of 4)
SADDAM INSANE DID SAY HE WAS GOING TO MAKE US GO BROKE INVADING HIS COUNTRY. INVADE HIS COUNTRY WE DID GOING BROKE WE ARE, SO ALL YOU PEOPLE THAT SUPPORTED OUR WONDERFUL GEORGE W BUSH AT THE TIME OF THIS INVASION STOP WHINING AND TAKE YOUR .... LIKE A MAN.
The country isn't going broke from military spending, dummy, the country is going broke from handing out welfare and social security. When SS was created, the average life expectancy was 67 years old. Now with people living 20-30 years after retiring, the system is drained. Obama would rather hand out unemployment to deadbeats for a whole year than help some hardworking guy start his own business. Learn what you're talking about before you shoot off at the mouth!
G Smith is right, No one is getting any loans and the banks will tell you on your face.
I am not quite sure whether SBA is a bureaucracy that produces anything(except salaries for its inmates), or whether it actually useless. Every small business I ever started (5 altogether) was denied SBA help, every time for obscure obfuscating reasons. It was less costly NOT to apply! Too much wasted paperwork and interview time for no return. But then, I am not black.
People have to understand that most of these loans NEVER get paid BACK!! Just like college loans. People who borrow to try and start a business was good when the economy is good, but even those people wish to not pay them back. This was good for awhile but when you see the billions lost, you understand Why!!!
As usual, Obama takes more from the people that pay the taxes that keep this country running and gives more to the deadbeats that don't do anything.
The SBA is a useless, overfunded, pork belly administration anyway. As far as I know in my dealings with them, they aren't there to help small business anyway. He should shut the whole thing down!
@Yon... black, white, male, female.... it doesn't matter the SBA is good for nothing except for generating salaries for those who work there and loans for immigrants to this country...If you are an American citizen they won't even talk to you but if you came here from another country they will gladly write you a check!
Kevin, I'm interested in your invention. Please email me at b o b s o m m at A O L
If you are for real, I can sign a non-disclosure statement and give references. Peace, Bob
Fed. pensions,fed prisons,4yrs in office-100% pension,etc.. Obama is blind to the real world, it can't be Xmas 365 days a year. The bill always comes due.....oh you can't expect a guy living in public housing to pay it. He can call some of his pal's with free cell phones and ask for a loan..