News From Congresswoman
Nydia M. Velázquez
Representing New York's 12th Congressional District - Brooklyn, Manhattan, Queens
Ranking Democratic Member, House Small Business Committee

For Immediate Release
February 25, 2004

Contact: Wendy Belzer,Kate Davis (202) 225-2361

SBA Budget Harms Small Businesses
Adminstration's budget request for the SBA leaves agency severely underfunded

WASHINGTON - Congresswoman Nydia M. Velázquez (D-N.Y.), Ranking Member of the House Small Business Committee, today called the SBA's FY 2005 budget proposal submitted by the administration "totally inadequate," and urged her colleagues to vote no on the Committee's views and estimates.

"The truth is this budget falls entirely too short and leaves our nation's small businesses in dire need," Congresswoman Velázquez said. "Not even one group appearing before our Committee last week spoke in support of the budget and that speaks volumes. Given the fact that the economy is struggling, more than 3 million jobs have been lost, and the job growth rate is anemic, the time is ripe to be investing in our nation's most important economic sector - small business - not slashing funding for it left and right."

The Bush administration's SBA budget proposal for next year slates important initiatives focused on low-income and rural entrepreneurs for termination, and provides no enforcement dollars to help open up the federal marketplace to small companies. It also fails to request any funding for the SBA's popular access to capital programs, instead proposing to substantially raise fees to both small business borrowers and lenders.

"I believe it is extremely important for our Committee to make this clear, given the talk in Congress over the last three years about the need for small business tax relief," Congresswoman Velázquez said. "It is hypocritical of us to talk this tax reduction rhetoric, and then turn around and increase small business taxes through higher fees. This is not only wrong, but it is incredibly disingenuous. I am glad the analysis before us sends a clear message to the Budget Committee that these types of smoke and mirrors budget tricks will not be tolerated."

At the adoption of the Committee's Views and Estimates today on the SBA's FY 2005 budget, Congresswoman Velázquez applauded the acknowledgment of the budget's shortcomings contained in the views, but criticized the final conclusion, which stated that "the overall spending level of the SBA should be supported."

"When the livelihood of not only small businesses, but also our nation's economy is on the line, we cannot sit back and allow this to happen," Congresswoman Velázquez said. "If we are going to continue to sit here and harp on the importance of small businesses, then how can we allow this unacceptable budget to move forward? While I recognize the views do point out some of the downfalls, the bottom line is that for a budget of nearly $1 billion in 2001 when President Bush took office to be slashed to a budget request of less than $700 million for FY 2005 just hinders our ability to assist small businesses, and asks too much of our nation's economic drivers."

Given their strong opposition to the deep cuts made to the SBA programs, the Democratic Members of the Small Business Committee will file separate views.

###