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Small Business Loan Programs Salvaged In 2009 Budget

Written by: Kate Lister

Article Overview: Small Business Administration funding cuts were threatened for 2009 but Senator John Kerry's Small Business Entrepreneurship Committee stayed their execution.

Small Business Loan Programs Salvaged In 2009 Budget

2009 Small Business Administration (SBA) Budget Wins a Round

Does it strike you as odd that at the start of a recession, the federal government would decide to reduce its support for small business -- the largest supplier of jobs in the U.S.?

Well they tried but Senator John Kerry's Small Business & Entrepreneurship Committee managed to not only salvage several small business loan programs that were threatened, but they wrangled an extra $100 million to boot.

The 2009 Small Business Administration (SBA) budget provides for increased loan oversight (good idea given the mortgage industry debacle), reduced fees, and will support microloans, contracting assistance, Small Business Development Centers, Women's Business Centers, veterans outreach programs, and technical assistance programs, and others.

"Small businesses create more than two-thirds of all new jobs, yet by refusing to fund important small business programs the Bush Administration has starved entrepreneurs of the resources they need to grow their firms," said Kerry.

The White House sought to eliminate microloans and the Microloan Technical Assistance program from the budget. The Committee said the $31 million loaned through the program in 2007 helped more woman and minorities in small business than any other program.

A couple of new small business loan initiatives also received funding: New Markets Venture Capital, and New Markets Technical Assistance—each receiving $5 million. They are aimed at promoting businesses and job growth in low income areas.

Click here for more information about the 2009 small business loan program budget.

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Article Tags: business development centers, business loan program, business loan programs, html title, income areas, john kerry, loan program news, mortgage industry, new markets venture capital, outreach programs, sba budget, senator john kerry, small business administration, small business development, small business development centers, small business loan, target, technical assistance program, technical assistance programs, venture capital program



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