President Clinton’s fiscal year 2000 budget proposal is winning high marks from the federal Small Business Administration.
According to SBA Administrator Aida Alvarez, if adopted as presented, the budget would fund record levels of loan and venture capital assistance and expand the agency’s capacity for technical assistance to the country’s small businesses.
”It demonstrates their commitment to small business owners, and to a cutting-edge SBA as a way to support and assist them,” said Alvarez.
The total new budget authority proposed for the SBA is $994.5 million, including $761.5 million in regular appropriations and $233 million as contingent/emergency appropriations to support the disaster loan program. This compares to $820 million appropriated by the Congress for the current fiscal year, which included $101 million as contingent/emergency appropriations for the disaster loan program.
”The President’s commitment to investing in this most vibrant sector of the American economy will pay dividends to the American people for years to come,” said Alvarez.
Alvarez also pointed out that several national “success stories” benefited from SBA-backed financial assistance at a crucial stage in its development. As examples of such, she cited: America OnLine; Outback Steakhouse; Federal Express; Office Depot; Intel; Gymboree; Nike; Tom’s of Maine; and Ben & Jerry’s.
Among the highlights of the budget proposal are efforts to enhance small business entrepreneurial development assistance, including;
$9 million to support the Women’s Business Center network – which will have nationwide coverage by the end of fiscal year1999. These centers provide technical and business development assistance to women entrepreneurs.
$10 million for 20 new One-Stop Capital Shops to be opened beginning in FY 1999 in connection with the new Empowerment Zones. These centers provide a single source of business financing and information to individuals seeking advice and assistance on starting and growing a small business.
$3 million for BusinessLINC, a new initiative to coordinate federal efforts to encourage large businesses to work with small businesses in distresses areas.
$1 million to provide increased assistance to the Native American community, especially on Indian reservations, through technological upgrades to and continued support of the 17 Tribal Business Information Centers.
$615,000 for training and assistance to veterans, especially disabled veterans wishing to start a small business.
$62 million for the Small Business Development Center (SBDC) program, coupled with a proposed legislative change to allow SBDCs to charge fees to small businesses for counseling assistance.
$5 million for continued for other technical assistance and information programs, including $3.5 million for the Service Corps of Retired Executives (SCORE), $700,000 for Business Information Centers (BICs), and $790,000 for the women’s business census with the Department of Commerce.
The Clinton Administration budget proposal also guides the SBA into the 21st Century. The federal spending plan includes;
$8 million to continue the systems modernization efforts SBA began in FY 1998. This will allow SBA to continue modernizing its financial and program systems – beginning with the development of a new lender monitoring system. The money would also be used to support SBA’s lender oversight and review efforts, and its financial analysis of loan performance and loan subsidy rate processes.
$5 million will be used primarily for SBA employee skills training.
