Is SBA S.O.L.?
With a general lack of respect from lawmakers and entrepreneurs alike, some say the agency has outlived its usefulness. Can the SBA be saved?
By Joanne Cleaver •
Opinions expressed by Entrepreneur contributors are their own.
People usually complain, loud and long, when a populargovernment agency is faced with dramatic budget cuts. So whatexplains the deafening silence after the Bush administration'sinitial budget slashed funding for the SBA by 40 percent, to $540million? Small-business-minded senators rode to the rescue,restoring $264 million to a budget resolution in hopes ofprotecting the 7(a) Loan Guaranty Program and a venture capitalprogram for businesses in economically depressed areas.
Still, some of the dramatic changes survived: Small businesseswill pay twice as much-$2,800-in fees for their guaranteed loans,and for the first time, Small Business Development Centers (SBDCs)will start charging entrepreneurs for counseling.
Continue reading this article — and all of our other premium content with Entrepreneur+
For just $5, you can get unlimited access to all Entrepreneur’s premium content. You’ll find:
- Digestible insight on how to be a better entrepreneur and leader
- Lessons for starting and growing a business from our expert network of CEOs and founders
- Meaningful content to help you make sharper decisions
- Business and life hacks to help you stay ahead of the curve
