Small Businesses in Danger in 2009?

President Bush’s budget proposal has raised a lot of hype (and not necessarily good hype) from the United States House Small Business Committee. The Committee believes the proposal neglects small businesses throughout the U.S.

The budget would cut the Small Business Administration’s funding by an additional 15 percent and even abandon many of the programs that assist entrepreneurs.

In summary, the proposal:

1. Increases fees for the SBA’s primary loan program.
2. Raises interest rates for the Microloan program (Microloans are necessary when entrepreneurs need capital but do not have a strong credit history).
3. Cuts funding for the Women’s Business Centers.
4. Cuts funding for Small Business Development Centers.
5. Maintains inadequate staffing levels.

Chairwoman Nydia Velazquez of the Committee on Small Business said:

“If we are serious about restoring our economic strength, there is no better way than investing in the nation’s small firms. This budget does the opposite.”

Healthcare groups are among the many others that do not approve of Bush’s proposal (FY 2009).

To find out more about the budget affects on small businesses, tune into the SmallBusinessNewz video.