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President’s Budget Cuts Entrepreneur Assistance Programs

From Association for Enterprise Opportunity

Breakdown of President Obama’s FY2013 Budget for Micro.

From Ann Sullivan, Madison Services Group, Inc.

Although we are wading through all the details of the President’s FY13 budget submission released yesterday, we have pulled out the proposed funding numbers for the programs for which we advocate.

First of all, the SBA recommended the PRIME program be eliminated. This program, which provides grants to organizations that provide business and credit assistance, was funded at $3.5 million in FY12. The microloan program, funded at $25 million last year, is proposed to be funded at $18 million with an additional $2.8 million in lending authority. Cut. Microloan technical assistance, funded at $20 million last year, is proposed to be funded at $19.8 million. Cut. The Women’s Business Center program, funded at $14 million last year is proposed to be funded at $12.6 million in FY13. Cut.

Faring better are USDA and Treasury programs. The USDA RMAP program received zero funding in FY12 but $22 million and $3.4 million in lending authority is recommended for FY13. The RBEG program proposed funding level for FY13 is $34 million, up $10 million from FY12. And the CDFI fund is proposed to stay at even funding for FY13 at $221 million.

Of course, the President proposes and the Congress appropriates, so these recommendations are just that—recommendations. However, the President’s budget submittal serves as a blueprint from which Congress takes its cues. Which means that the AEO community has a big mission to keep funding for programs critical to the underserved communities who need credit and credit assistance. Together, we have been successful in the past and rest assured we will continue to fight for those entrepreneurs who will lead us to full employment if just one in three add a job. That’s worth fighting for.