Non-SBA small biz programs also hit in 2021

Programs eliminated at Commerce, USDA, DOE

      President Trump’s proposed budget for fiscal 2021 would strike down or weaken small business programs across multiple government agencies--not just at the Small Business Administration, the House Small Business Committee leadership said in a new

     report. The report highlights more than a dozen programs at several agencies slated to lose all funding in 2021, effectively shutting them down. The programs to be eliminated, and their previous budgets, include:

• Commerce Dept.’s Economic Development Administration, offering grants, loans and a revolving loan fund to small firms, $330 million;
• Commerce’s Community Development Financial Institutions program, offering loans and financial services in low-income areas, $166 million; and
• Commerce’s Manufacturing Extension Partnership, $140 million.

      Commerce’s Minority Business Development Agency--the only federal agency solely aimed at assisting minority-owned businesses--would see its budget reduced to $10 million, down from $42 million, which is a 76% cut. The agency provides access to public and private debt and equity financing, along with training, grants and contributions.

USDA terminations and cuts

      At the USDA, Trump would shut down 9 existing programs benefiting many small businesses:

• Rural Economic Development Direct Loans and Grants, $60 million;
• Rural Business Development Grants, $37 million;
• Rural Energy for American Program (REAP), $20 million;
• Farm-to-School Grants, $14 million;
• Value-Added Producer Grants, $12 million;
• Rural Microentrepreneur Assistance Program, $6 million;
• Rural Cooperative Development Grants, $6 million;
• Health Food Financing Initiative, $5 million; and
• Appropriate Technology Transfer to Rural Areas, $3 million.

Energy Dept. (DOE) impacts

      Trump proposes a cut of more than $2 billion, or 74%, from DOE’s Office of Energy Efficiency and Renewable Energy. Many small startups develop renewables, and many renewables benefit small businesses, the report said.

      DOE’s Advanced Research Projects Agency-E would see its $425 million previous budget go to zero, and an additional $311 million in pending grants could be canceled as well. About 30% go to small businesses, the report said.

Workforce issues

      The committee report called attention to proposed workforce training cuts and eliminations, including:

• Job Corps $1.7 billion down to $1 billion, a loss of 42%;
• Health Workforce Program, $1.7 billion, down to $737 million, 66% cut;
• NASA Office of STEM Engagement $120 million, eliminated; and
• Migrant and Seasonal Farmworker Training, $92 million, eliminated

      Republicans on the committee did not issue a comment. A call to the GOP staff on the committee was not returned before press time.

More information:
Report link : https://bit.ly/38V2mIB

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