In the big picture, President Obama has asked for a smaller budget for the Small Business Administration in fiscal 2015.

      But a more detailed look at the SBA’s budget request shows that some programs for entrepreneurs and small businesses not only escaped cuts but are slated for dramatic growth.

      The SBA’s 117-page budget justification shows an agency performing numerous tweaks to its operations: cutting some programs deeply or eliminating them, leaving others flat, while rapidly expanding others.

      The winners include Entrepreneurship Education training, Business USA website, “Growth Accelerators” program and Regional Innovation Clusters to spawn new technology startup companies. All are set for sharp increases in the administration’s plan.

      Losers include the “STEP” export promotion program and PRIME Technical Assistance, which would get zero funding, and the HUBZone program, which would lose more than $200,000 in support.

      The administration also proposes to continue funding for many small business initiatives at essentially flat levels. The SBA’s Office of Government Contracting & Business Development operating budget, for example, stays at $1.3 million, the same as this year.

      In total, the SBA’s budget would shrink to $710 million, down from $770 million enacted this fiscal year and from the $1 billion pre-sequestration allocation in fiscal 2013, according to the SBA’s budget justification (http://goo.gl/LveWgR).

      Most of the reduction, about $64 million, is in loan subsidy costs, even while meeting anticipated loan demand, the SBA said. Because of improving economic conditions, the SBA expects fewer loan defaults, which will reduce costs per loan.

      While total SBA funding dips, a few programs are set for a big bump.

Winners

      Entrepreneurship Education training would triple from $5 million this year, to $15 million in fiscal 2015. The program targets high-growth small businesses in underserved communities, offering business owners a seven-month executive education program. Participants get 100 hours of specialized training--including online training--and access to technical resources and networking.

      The SBA tested the approach in its Emerging Leaders pilot with 400 executives. At the end, 67% reported an increase in revenue, 75% hired new employees and 48% secured government contracts, the SBA said.

      Another budget winner is the BusinessUSA.gov website, which would see its funding from SBA double from $3 million this year to $6 million in fiscal 2015.

      The website, which is jointly managed by SBA and the Commerce Department, debuted under former administrator Karen Mills two years ago as part of the agency’s “No Wrong Door” approach. It offers business information and resources from multiple agencies in a single website. The services include access to more than 4,000 federal, state and local business programs and resources, including data, counseling, financing, training and various loan programs. There also is an application to guide users to federal contracting information.

      In its first year of operation, BusinessUSA.gov had nearly 1.4 million visits, with 70,000 subscribers and 27,000 Twitter followers, SBA said.

In its first year of operation, BusinessUSA.gov had nearly 1.4 million visits, with 70,000 subscribers and 27,000 Twitter followers, SBA said.

      The additional funds would allow the SBA to incorporate a web-responsive design and make the website mobile-friendly, the SBA said. The agency also is beefing up its analytics to get more value from user feedback.

      The SBA also requested $5 million to support the Growth Accelerators program, doubling the funding from $2.5 million this year.

      The SBA said it would expand existing accelerators, start new ones at universities and private organizations, and run competitions. The agency announced its first such contest on March 13 with $2.5 million in cash prizes (http://goo.gl/v0AcpF).

      However, the growth accelerator expansion may be mostly a rejiggering of existing funds. Looking at the budget documents, while the growth accelerators initiative is expanding by $2.5 million, the SBA is planning a $1.9 million reduction in its support for its Small Business Innovation Research/Small Business Technology Transfer programs. Those appear to be handled by the same office as the SBA growth accelerators and promote similar investments. SBA officials declined to comment on the budget details.

      In a related program, the SBA is requesting $6 million for Regional Innovation Clusters, up from $5 million this year.

      “Clusters bring small businesses and entrepreneurs together with venture capitalists, universities and regional industry leaders to leverage a region’s unique assets, transforming entrepreneurial ideas into sustainable high-growth small businesses,” the SBA said. The agency included in its request money for evaluating the regional clusters’ effectiveness.

Losers

      While some programs are targeted for growth, others are being phased out, canceled or shrunk. That includes nearly $4 million less from salaries for business loan administration, $1.5 million less for SBA office operating budgets and a $959,000 cut from SBA transit subsidies.

      The SBA’s Office of the Chief Information Officer would see a $500,000 budget cut, while the Office of Investments & Innovation would lose $4 million (including $2 million that paid for a program evaluation in fiscal 2014). HUBZone programs would drop by $231,000.

      The $3.5 million PRIME Technical Assistance program and the $8 million State Trade & Export Promotion (STEP) program both would be canceled. The “FAST” grants program for innovation would lose $2 million. It was not immediately clear if those program goals would be met by other programs. SBA officials declined a request for clarification.

Flat budgets

      Many SBA programs would see flat or slightly rising budgets in fiscal 2015, under the administration’s request.

      Those programs and their proposed budgets for fiscal 2015 include $123 million for Small Business Development Centers; $20 million for microloan technical assistance; $14 million for Women’s Business Centers; $12 million for the SCORE program; $7 million for Boots to Business veteran entrepreneur training; $4.2 million for Native American Outreach; and $2.8 million for 7(j) Technical Assistance.

      There also is to be available $2.5 million for Veterans Business Outreach Centers.

More information: SBA budget justification document: http://goo.gl/LveWgR