Miller says Bush budget cuts will Undermine California small Businesses

WASHINGTON, DC – Services for America’s small businesses receive the brunt of new budget cuts proposed by President Bush, a new congressional report finds. Rep. George Miller (D-Martinez) joined other Democratic members of Congress to release the report today analyzing the budget President Bush submitted in February and the impact it will have on small businesses, including those in California.

The report finds that that the budget would cut or eliminate programs for small businesses by a disproportionate amount. The FY 2007 budget request reduces funding or terminates 75 out of the 100 government-wide small business programs affecting every portion of the small businesses community. A list of the cuts in California is below.

“Small businesses drive our economy,” Miller said. “But the President’s budget proposal would deny small businesses the tools they need to be successful. The President likes to talk about how important small businesses are to our country but his budget speaks louder than his words. The nation’s 23 million small businesses need a budget that reflects their value to the economy. The President’s proposal simply does not do this. In the Innovation Agenda that House Democrats unveiled last fall, we pledged to work with Congress and the President to invest in America’s economy and specifically to strengthen America’s small businesses. This budget is a terrible start if we are serious about this effort.”

This year’s budget proposal reflects an average 60 percent funding cut for small business programs from last year’s budget. Since President Bush has taken office small business programs have been cut by nearly $10 billion.

Among the budget cuts in California:

7(a) Loan Program (received no funding) brought in $2,651,869 through 11,729 loans to California businesses in FY05.

California businesses currently have 28 active Advanced Technology Program (ATP) awards (slated for elimination) totaling $20.2 million for the research and development of innovative technologies.

In FY05, the Agricultural Marketing Service (slated for a cut) provided California with $49,000 to assist small- and medium-sized farmers in marketing locally raised food and agricultural products.

Bank Enterprise Award (BEA) program (slated for elimination) brought in 1 award totaling $234,000 in FY05 to benefit California small businesses.

Brownfields Economic Development Initiative (BEDI) (slated for elimination) awarded California entities with a total of $1.1 million in FY05 for the redevelopment and revitalization of that state’s brownfields sites.

In FY05, the Commodity Credit Corporation (CCC) (slated for a cut) provided farmers in California with $89.3 million in direct payments to meet their capital needs.

Community Development Block Grants (CDBG) (slated for a cut) brought in $526.6 million in FY05 for community rebuilding and revitalization projects in California.

Community Development Financial Institutions (CDFI) (slated for a cut) brought in 3 awards totaling $3.8 million in FY05 to assist California businesses in accessing affordable financial products and services.

In FY05, California entities were awarded $1.6 million for its network of Community Technology Centers (CTC) (slated for elimination) – giving business owners access to computer technologies.

In FY05, the Economic Development Administration (EDA) (slated for a cut) awarded planning district organizations in the state of California with $32.2 million to stimulate economic and job growth in economically distressed communities.

The Economic Development Initiative (EDI) (slated for elimination) provided California with $9.8 million in grants in FY05 to enhance small business loan guarantees and support local community development initiatives.

California received $1.7 million in FY05 grants provided by HUD for its Round 2 Empowerment Zone (EZ) (slated for elimination) communities.

In FY05, the Environmental Quality Incentives Program (EQIP) provided California businesses with $62.1 million in financial and technical assistance to conserve farmland.

Farm Services Agency (FSA) (slated for elimination) provided small farmers in California with $92.6 million in FY05 to administer programs that preserve and promote American agriculture.

Funding for the Improvement of Postsecondary Education (FIPSE) (slated for a cut) provided schools in California with grants totaling $19.6 million in FY 05 to focus on the creation of small enterprises.

Job Corps (slated for a cut) provided $115.6 million in funds to California in FY05 to operate their network of business assistance and employment training campuses.

In FY05, the California Manufacturing Extension Partnership (MEP) (slated for a cut) center received $10.2 million to assist in the advancement and improvement of the small manufacturing sector.

Microloan (slated for elimination) brought in $2,250,546 through 150 loans and $5,517,173 in technical assistance to California businesses in FY05.

Migrant and Seasonal Farmworker Program (slated for elimination) employment and entrepreneurship initiatives brought in $20.7 million in FY05 for California farmers.

The Minority Business Development Agency (MBDA) (slated for a cut) provided California organizations with $1.0 million in financial assistance in FY05 to assist in the establishment and growth of local minority-owned businesses.

In FY05, the Native American CDFI Assistance (NACA) program (slated for elimination) brought in 1 award totaling $80,000 in FY05 to provide California businesses in Native American, Alaska Native, and Native Hawaii communities with access to capital, credit, and financial services.

In FY05, the Renewable Energy Systems and Energy Efficiency Improvements Program (RES & EEI) (slated for elimination) provided $77,145 in grants to California small businesses and farmers for the development of energy efficiency products and services.

Rural Business Enterprise Grants (RBEG) (slated for elimination) brought in $1.7 million in FY05 to assist in the development of small rural businesses in California.

In FY05, the Rural Business Opportunity Grants (RBIP) (slated for elimination) provided California small businesses with $200,000 in grants for the purposes of providing entrepreneurial training, technical assistance, and economic planning.

The Rural Community Development Initiative (RCDI) (slated for elimination) provided businesses and organizations in California with $632,383 in technical assistance grants in FY05 for rural microenterprise development.

In FY05, $8,366,350 was invested into 9 California small businesses through the SBIC Participating Securities Program (received no funding).

In FY05, Section 108 Community Development Loan Guarantees (slated for elimination) provided California businesses with $57.4 million in funding to finance a wide range of community and economic development activities.

California was given $9.3 million for their Small Business Development Centers (slated for a cut) in FY 2006.

The Susan Harwood Worker Training Grants Program (slated for elimination) provided California with $356,091 in FY05 grants to assist small business owners and employees in accessing worker safety training programs and educational materials.

In FY04, California was awarded $1.0 million in grants through the Technology Opportunities Program (TOP) (slated for elimination), which connects local entrepreneurs with technological small business assistance.

In FY05, the Urban and Rural Community Economic Development (CED) Grants (slated for elimination) provided California grantees with $2.1 million in funding to create business ownership opportunities and maintain the economic viability of existing businesses.

California was given $1.5 million for their Women’s Business Centers (slated for a cut) in FY 2004.

###

appropriations districtmatters economy

Posted by Intern, CA07 at 08:04PM | | Comments ()

« Rep. George Miller Lays out Priorities for 2006 | Main | Congressman Miller takes Struggle in Darfur to United Nations »