House Small Business panel chief pushes SBA over sequester


The $85 billion in sequester cuts started going into effect at the start of March, and there has been little indication so far that the cuts will be rolled back any time soon.

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In the weeks before the deadline, President Obama and his administration warned that the automatic cuts would take a toll on areas like air travel, but eventually softened their tone to say the pain would take time to be felt.

GOP defense hawks have also blasted the cuts as dangerous to national security, but other Republicans have been more than happy to lock in the spending restraint.

In her letter to Senate Appropriations, Mills said that sequestration would cut an SBA loan subsidy, leaving the agency unable to give loans to close to 2,000 small businesses.

The sequester would also mean less federal contracts for small businesses, Mills added, and less funding for SBA counseling centers. Mills also said that sequestration’s drag on the economy would mean less matching funds for businesses receiving SBA loans.

That, Mills said, “could effectively double the negative budget impacts of sequestration for SBA’s business partners.”

Graves, in his letter, asked what contingency plans SBA has for loan programs, including whether the agency has any plans to limit the size of loans or if it plans to give priority to early applicants for loans.