WASHINGTON – Senate Committee on Small Business and Entrepreneurship Chair Mary L. Landrieu, D-La., today made the following comments after President Barack Obama released his budget proposal for the Small Business Administration (SBA). The President’s proposal if enacted would responsibly fund the SBA’s core lending and disaster programs with adequate funding for FY2013.
“The President’s budget for the Small Business Administration reaffirms his pledge to help support the engines of the economy and be ready to help businesses and home owners in the aftermath of disasters,” said Senator Landrieu. “This is a very strong budget, in tough budgetary times. However, I am very concerned when it comes to reducing the budget for our counseling and technical assistance programs and the negative impact such cuts could have on critical core services for America’s entrepreneurs. We must ensure that small business have the necessary tools and resources to keep their businesses thriving, while working to find reasonable avenues to reduce the budget. ”
The President’s proposed budget for FY2013 funding:
• Totals $1.115 billion (including disaster funding).
• Requests $349 million in subsidy for SBA’s 7(a) and 504 business loan programs to leverage $26 billion in capital for small businesses.
• Supports $1.1 billion in direct disaster assistance loans to help disaster victims.
• Requests additional support for returning veterans who want to start their own business.
• Requests approximately a 10 percent cut in certain core counseling and technical assistance programs.
• Requests funding cuts for administrative costs.