Congress handed the Small Business Administration a mixed bag during its final session of the year, passing an appropriations bill that boosted funding to a number of programs while cutting others and slashing the agency’s overall budget by nearly $200 million. In total, the SBA received $580 million for 2005, a drop of nearly 25% on last year and a far cry from its $900 million purse in 2001.
Despite consistent budget cuts each year since President Bush took office, SBA Administrator Hector Barreto says he remains optimistic and confident in the current Administration’s support for the development of small businesses. “This is an important win for small businesses and will ensure long-term stability to the program,” Barreto said in a statement.
The 504 loan program — commonly used by small manufacturers to purchase real estate, buildings, and machinery — was among the winners, with a boost that will allow it to back $5 billion in loans. The maximum loan size available to potential small-business owners grew to $4 million.
For this complete story, please visit Congress Cuts Small Business Administration Budget for 2005.
