I understand that government spending is often misguided and bloated. Cuts to a large budget are inevitable, particularly in wartime. But, the Small Business Association, particularly the MicroLoan program, is the wrong place to cut funding. There are plenty of other places to
trim the fat.
President Bush has said that small business is the "embodiment of the American Dream." More over, President Bush has stated on more than one occasion that
small businesses create the majority of jobs in the United States. President Bush's last two presidential opponents said the same thing. Indeed, Presidents Clinton, Bush (41), Reagan, Ford and Carter have all stressed the importance of cultivating small business growth to foster job creation. In other words, its a nonpartisan issue. With massive layoffs from big business a regularity, now more than ever, we need to encourage small business start ups and expansion.
In his proposed budget (which is not really a "budget" since it does not include the cost of the Iraq and Afghan wars), President Bush seeks to cut funding to the Small Business Association and terminate the "Microloan" program. We should not be slashing anything from the SBA. We need the jobs it helps create, plain and simple. If there are inefficiencies in the agency, then by all means, let's identify and rectify those inefficiencies. But, taking the axe to these important economic development programs is not the solution. Rather, its a misplaced and irresponsible action.
The Microloan program provides very small loans to start-up, newly established, or growing small business concerns. Under this program, SBA makes funds available to nonprofit community based lenders (intermediaries) which, in turn, make loans to eligible borrowers in amounts up to a maximum of $35,000. The average loan size is about $10,500. These loans are critical to local entrepreneurs who have few options for funding start ups or growth.
Many neighborhood businesses do not need to borrow large amounts of money to get started. Look around your town and think about the needed and employment generating service businesses such as landscaping, plumbing, hair salons and barbers, deli's, garages and many others that employ either you or your neighbors and help make up the fabric of your community. These are the very businesses that can be started or expanded with microloans.
Microloans serve as a bridge to self-employment and provide a key source of funding many banks don't adequately offer. We should not cut or terminate this program. Rather, we should expand it because the jobs created by small business matter. They matter not only to those getting the pay checks, but also matter to those using the services provided. The give and take we have with our local small businesses help define who we are as a community and as a country.
President Bush was right when he said that small business is the embodiment of the American Dream. He's wrong to undermine that dream with misplaced funding cuts and terminating key SBA programs.
Without small business options we have less choice and fewer jobs. We need more "mom and pops" and less WalMarts.
I encourage you to contact your Senator and Congressional Representative and ask them to fund job creation and reject the President's cuts to the SBA.
