Small Boost for SBA Budget The Small Business Administration would get a 2.4% increase in discretionary budget authority, to $798 million, under President Bush’s fiscal 2004 budget proposal released Feb. 3. The administration said the budget will support more than $20 billion in guaranteed lending and equity investment in small firms. “SBA seeks to target assistance more effectively to credit-worthy borrowers who would not be well-served by the commercial markets in the absence of a government guarantee to pay off loans,” the budget document says. ”SBA is actively encouraging financial institutions to increase lending to start-up firms, low-income entrepreneurs, and borrowers in search of financing below $150,000.” In its performance evaluation of selected SBA programs, the administration said SBA has not demonstrated results for the Section 504 loan program, which is used primarily to finance the purchase of land and buildings. “SBA needs to examine whether it would be more cost-effective to the government and borrowers to concentrate fixed asset loans in the 504 loan program or the 7(a) program rather than dividing this service between both programs,” the administration said. A rating of “results not demonstrated” was also given to the Small Business Development Center program, Business Information Center program and SCORE, the Service Corps of Retired Executives. The president’s 2003 budget rated the 8(a) program “ineffective.” The 2004 budget did not rate the program.