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Rep. Nydia M. Velázquez (D-NY), the Ranking Member of the House Small Business Committee, released the following statement regarding President Trump’s Fiscal Year 2018 proposal: 

         “I am pleased that this otherwise draconian budget, which would slash so many federal agencies, largely leaves intact most Small Business Administration (SBA) programs.  I do have concerns that the Administration aims to reduce funding for SBA’s Entrepreneurial Development initiatives by more than twenty percent. Small Business Development Centers and Women’s Business Centers have a proven track record of fostering business ownership, helping prospective entrepreneurs launch new ventures and facilitating job creation.  Shrinking these programs will only harm our economy over the long term.  

         “Likewise, I was disappointed that the budget takes a step backwards on the microloan program.  For Fiscal Year 2017, Congress appropriated funds supporting $44 million in microloans. It would be a step backward to lessen this investment, depriving many entrepreneurs – especially women and minorities - with capital needed to get off the ground.  

         “Overall, I would note that the SBA’s number of Full Time Equivalents has been almost halved since 1990. As the sole federal agency charged exclusively with helping small businesses succeed, I would suggest further reductions in the agency’s capacity constitute a step in the wrong direction.  

         “Outside of SBA, unfortunately, this budget targets for elimination programs that help small businesses, particularly those that have traditionally been underserved. Rural entrepreneurs, for instance, would see opportunity restricted as the U.S. Department of Agriculture’s Rural Business Program and Rural Economic Development Grants are zeroed out. These initiatives provide loan guarantees, direct loans and grants to individuals and rural businesses, fostering economic activity in rural America. Similarly, the Budget proposes eliminating the Department of Commerce’s Economic Development Administration, which stimulates entrepreneurship in underdeveloped areas throughout the nation.  

         “Women and minority-owned businesses would also be impacted if this budget’s cuts were ever implemented.  The President proposes eliminating the Minority Business Development Agency, an innovative public-private partnership that provides technical assistance and counseling to female and minority-owned enterprises. 

         “Directly contradicting the President’s campaign promise to support a manufacturing resurgence, this budget would deprive small manufacturers of resources. The Manufacturing Extension Partnership (MEP) helps manufacturing firms, particularly new and smaller companies, overcome hurdles unique to that sector. Last fiscal year, MEP helped create or retain more than 86,000 jobs.  Unfortunately, the Administration would also cut this program.  

         “While I am gratified that many SBA programs would be spared under this budget, in countless other areas, the Trump Budget would shortchange small businesses, in order to finance tax cuts for billionaires and large corporations.  This approach would serve only to weaken our economy and endanger our prosperity. We must all work together to block these ill-conceived cuts from being actualized.” 

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