Download a FY2012 Budget to FY2010 Budget Table pre Conference thus far.
The following summary was provided by Townsend Public Affairs:
The Committee recommended the SBA to be funded at $955 million, an increase of $225 million above the FY2011 level. The increased funding went to:
- The business loan programs an increase in $122.9 million for administrative expenses and to help subsidize the 7(a) and 504 guaranteed loan programs.
- The Disaster Loan Program – which received $121 million above FY2011 level.
Non-Credit Business Assistance Programs received a cut of $19 million from FY2011 levels. PRIME, the Entrepreneurial Development Initiative, and the Drug-Free Workplace Grants were not funded (not eliminated) and the 7(j) Technical Assistance Program received a $200,000 cut. The Entrepreneurial Development Initiative is a public-private partnership entrepreneurial education initiative that will develop successful public private partnerships to create regional innovation clusters that create and sustain an environment for small business growth. The SBA 7(j) Management and Technical Assistance Program is a program in which the SBA provides qualifying businesses with counseling and training in the areas of financing, business development, management, accounting, bookkeeping, marketing, and other small business operating concerns.
The Committee recommended $21.9 million for grants under the Microloan Program with an additional $3.6 million being recommended under a “Business Loans Program Account” to support lending under the Microloan Program.
Language in the report indicates that for funding provided in FY2012, the Committee included a provision that temporarily increases the maximum amount of grant funding eligibility for qualified Microloan intermediaries. The report notes that, “this temporary condition will provide relief to Microloan intermediaries that are providing increased assistance to Microloan borrowers during the economic downturn.”
The report also states that, “The Committee supports funding for veterans programs and veterans business outreach centers and provides $2,500,000 for veterans programs. When determining the allocation of the funding, the Committee strongly encourages SBA to consider centers with significant experience in conducting outreach to veterans.”
The two appropriations bills that deal with the SBA funding need to be reconciled – as do the other 11 appropriations bill. They have until end of fiscal year 2011 to do so (Sept 30). It is highly unlikely that the 12 bills can be reconciled by the deadline, so there is a 2-month continuing resolution (CR) on the table. We should know sooner than later about the CR. No timeline has been set for a Conference committee to work out differences between the House and Senate versions.
I’ve been told by our DC insiders that they negotiate in conference.
Note that the final conference numbers will be subject to a mandatory 1.5% cut to the federal budget agreed to by Congress and the President as part of the recent debt-ceiling legislation. (“Yay!” she says sarcastically.)