House Committee Takes Ax to Some SBA Services
The House Small Business Committee wants to shut down SBA offices that provide training and assistance to women, veterans and Native Americans. The committee said the offices duplicate other SBA programs.
The reorganization of SBA services was approved March 7 by a voice vote.
In submitting its views to the Appropriations Committee on President Obama’s 2013 budget request, the Small Business Committee recommended that no money be allocated for women’s business centers, veterans business outreach centers, the HUBZone office and the Office of Native American Affairs.
The committee proposed a one-third reduction in the budget for the 7(j) program, which provides management and technical assistance to 8(a) companies. Some 8(a) firms have complained that SBA offices are already too understaffed to provide the services.
The committee said entrepreneurial training for the socioeconomic groups could be provided by SBA’s small business development centers and SCORE, the volunteer program that matches retired business executives with small firms. It urged that funds be reduced or eliminated for “programs with narrow missions or incapable of raising non-federal funds.”
By eliminating funding for National Veterans Entrepreneurial Training Program, the committee said an additional $7 million could be added to the small business development centers. It also endorsed full funding for SCORE. The Obama administration proposed cutting funding for both programs by 10%.
The committee proposed shifting funds to hire 15 additional procurement center representatives. Those officials monitor contracting offices in all federal agencies and promote the use of set-aside contracts, but SBA has acknowledged that its current staff of 58 PCRs is not enough to monitor the 30,000 contracting shops. The committee said “SBA undervalues the importance of” its mission to promote small business contracting opportunities.
In a further effort to streamline the agency, the committee proposed abolishing the 10 regional SBA offices on the grounds that they are an unnecessary layer of management between headquarters and the 84 district offices that work directly with small businesses. It recommended eliminating the position of deputy director in the district offices.
The committee’s ranking Democrat, Rep. Nydia Velazquez of New York, said she disagrees with some of the Republican majority’s proposals, such as cutting funding for veterans’ services. But she added that she and Chairman Sam Graves, R-MO, “both believe more work needs to be done at SBA on setting its priorities.”
Appropriations committees in both houses of Congress will shape the final SBA budget.
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