Trump’s Proposed Budget Would Cut Funding to Small Businesses
The White House is proposing to cut the Small Business Administration’s budget by 5 percent for the next fiscal year, making it the smallest budget of any Cabinet-level agency. The Trump administration sent its proposed budget to Congress Thursday. The budget eliminates several Obama administration programs aimed at creating jobs, putting greater emphasis on defense spending with a $54 billion increase.
The proposed budget would cut $43.2 million from the SBA, reflected in $12 million in cuts to technical assistance grants as well as cutting other redundant programs and services the Trump administration feels would be better provided in the private sector, according to the budget message issued by the Office of Management and Budget.
Trump advisers are looking to tighten the Commerce Department’s budget by about 18 percent, including eliminating the Economic Development Administration (EDA). The EDA, which receives $221 million a year, has “limited measurable impacts and duplicates other federal programs,” according to the budget proposal.
The Minority Business Development Agency (MBDA), which receives $32 million a year, is also on the chopping block. Part of the Commerce Department that supports minority-owned businesses, the MBDA is duplicative of other programs carried out by the SBA in its Small Business Development Centers across the country.
The SBA will continue to provide more than $1 billion in disaster relief loans to small businesses, as well as microloans and technical assistance to start-ups. The agency will also continue its veteran support training and lending programs.
“The president is committed to assisting small businesses through reducing the regulatory tax burdens that can impede the development of small firms,” the Trump administration said.
The biggest targets of the Trump administration’s proposed budget cuts include the Environmental Protection Agency (down 31 percent), the State Department (down 29 percent) and the Department of Labor (down 21 percent). The biggest proposed increases would go to the Departments of Defense, Veterans Affairs and Homeland Security.