|
Federal Market Intelligence for Small Business |
|
|
|
|
Carranza backs deep SBA cuts'Do more with less' a goal; Velazquez: "It doesn’t work"Jovita Carranza, newly confirmed as administrator of the Small Business Administration, got off to a rocky start in her first appearance in that role before the House Small Business Committee. After a friendly introductory hearing two months ago to approve her nomination, there was a change in tone at the Feb. 26 hearing, which followed President Trump’s proposal of extensive SBA budget cuts. Committee Chair Nydia Velazquez, D-NY, made it clear in her opening remarks that she was not pleased with the planned 37% reduction to SBA’s entrepreneurial development programs and 18% reduction to the SBA’s budget overall in fiscal 2021. For example, the network of hundreds of Small Business Development Centers would lose 58% of its funds, going from $135 million down to $88 million. The SBDCs provide counseling, referrals and technical assistance to small businesses. "How do you reconcile these steep cuts with your stated priorities to help women, minority and veteran entrepreneurs?" Velazquez asked Carranza. Carranza responded that she would not "shy away from" defending the $88 million proposal . She said she has told SBDC leaders she is "very serious" about providing support but also was "closely reviewing the budget and how we can explore opportunities to be just as effective with the $88 million," Carranza said. "But where’s the beef?" Velazquez asked. "Let me be very clear: I reject such a stiff cut to (SBDCs) and we will do everything in our power to fight this." Velazquez noted that Congress has tasked SBDCs with additional duties, including cybersecurity duties, and "you cannot expect them to do more with less. It sounds good, it sounds great, but it doesn’t work." Steve Chabot Later on in the hearing, Ranking Member Steve Chabot, R-OH, stepped in, saying Trump’s proposals were "suggestions" and Congress is likely to reject them. As the government’s deficit is rapidly growing, Trump is "making an attempt to actually be responsible, but by the time we get done with this, these will be plussed up," Chabot added. Velazquez jumped in. "The president wants to be responsible? Why pass a (more than) $1 trillion tax cut that favors big businesses and small businesses are an afterthought?" Efficiencies at SBA Asked by Rep. Tim Burchett, R-TN, how she would reduce duplication of effort at the SBA, Carranza said she wants to work closely with mayors, governors, other federal agencies and the private sector. With such strategic collaborations, "we can do a lot more with a lot less," she said. Iowa small businesses Though the hearing was jovial at times, there were more sharp moments. Rep. Abby Finkenauer, D-IA, said Iowa small businesses and farmers have been hurt by recent drops in trade with China. She is very worried about the proposed 58% cut in the SBA’s State Trade Expansion Program (STEP), from $19 million down to $8 million. "This feels like another slap in the face," FInkenauer said. Carranza responded that she's working on developing ways for SBA to "be more efficient and effective" by reviewing the mix of inhouse programs and grant programs. "It's an overall evaluation," she said. SBA's Office of Rural Affairs Rep. Jared Golden, D-ME, said the SBA's Office of Rural Affairs, after many years without a director, finally got its first staff director in August 2019. He was very concerned that its budget is zeroed out for 2021. Carranza said she is addressing the issue by adding rural programs to the portfolio of the SBA Field Offices. Field Offices Following up, Golden also questioned Carranza on SBA Field Offices' staffing vacancies, saying the field offices currently have 690 staff, down from a historic level of 800 staff. Carranza said 160 people are in the pipeline being considered for SBA jobs, primarily for the field offices, and also for a program office that she did not name.
More information:
|
Washington Insider:
|
Copyright © 2020 Business Research Services Inc. All rights reserved.