news

STATEMENT

of the

Honorable Nydia Velazquez, Ranking Member

House Committee on Small Business

Release of Committee's Report on the Impact of the Ryan Budget on Small Businesses

Wednesday, April 9, 2014

If there is one number that you take away from this press conference, it is that the Ryan Budget would cost our economy well over a quarter a million small business jobs.  Far from being a “Path to Prosperity,” it is actually far more of a “Path to the Poorhouse.”

Because of small businesses important role in our economy, it is important that we craft a federal budget that supports their continued development.   Unfortunately, in this regard, the Ryan Budget clearly fails small businesses.  According to a report released today by Committee on Small Business Democrats, the Ryan Budget would dramatically reduce federal assistance and support for small firms across the country.  It finds that small business resources would be cut by nearly $11 billion.  A wide range of resources would be gutted – from contracts, to access to capital, to international trade assistance, to job training. The result will be lower startup rates and fewer jobs.

For small businesses to continue to thrive, they require an environment that is conducive for growth.  Many of the programs detailed in the Committee’s Report are critical to manufacturers, tech firms, retailers, and the service industry.  Studies have shown that many of them generate more than three dollars in additional federal revenue for every dollar spent.  What type of economic policy says that you cut programs that generate net positive income for the Treasury?  This begs the questions if the Republicans goal is to support good programs or just impose one party’s narrow political ideology on the entire nation. This is simply not a blueprint for job growth and not a blue print for small business.

Republicans always claim that they are champions of small businesses.  They oppose the ACA because it will cost small businesses jobs.  They oppose Dodd-Frank because it will hurt small business lending.  You would think that with all this rhetoric, small businesses would be a top priority.  But then you see what they do in the Ryan Budget you see that their rhetoric does not match reality.

Small businesses are the foundation of our economy – and the Ryan Budget takes a sledgehammer to them.  We can do better. We must do better – and this is why I will be urging my colleagues to reject the Ryan Budget and enact a true pro-growth budget.

###