SBA Administrator Guzman Lauds President Biden’s Budget for Fiscal Year 2025, Highlights Impact on Small Businesses

“President Biden’s Budget builds on his Administration’s unwavering commitment to strengthening entrepreneurial outcomes and opportunities across America,” said SBA Administrator Guzman. “From providing small businesses with much-needed access to capital and training on how to grow their businesses to getting relief to communities impacted by disaster, the SBA ensures small business owners have the information and resources they need for their businesses. With the investments in the President’s Budget, the SBA will deepen its work serving the small businesses and innovative startups that drive that creation, our Nation’s economy, and global competition.”

Under the Biden-Harris Administration, the United States has experienced the first, second, and third strongest years of new business application rates on record, with 16.5 million new business applications filed since the President took office. President Biden’s Budget protects and builds on this progress with proposals for responsible, pro-growth investments in America's small business ecosystem.

Specifically, the President’s Budget will:

• Expand Access to Capital for Small Businesses: The President’s Budget supports historic lending levels across the SBA’s business lending programs, including the 

7(a) business loan guarantee, capital for major fixed assets (504 loan guarantee), Small Business Investment Company (SBIC), and Microloan programs. The more than $58 billion in lending and investment authority in the Budget would address the need for greater access to affordable capital, particularly in underserved communities. The budget proposes statutory increases to the maximum SBA loan size for small manufacturers and exporters, as well as a new direct 7(a) lending program, which would further enable the SBA to address gaps in access to small loans. In addition, increasing the authorized lending level for the SBIC program by 16 percent to $7 million would significantly expand the availability of patient capital and equity investments across the Nation.

• Support Disaster Mitigation and Recovery: As communities across the nation face increased risks from natural disasters, the President’s Budget continues to support the SBA’s Disaster Loan Program. This program is vital to ensuring the SBA can continue administering low-interest disaster loans that provide a financial lifeline for homeowners, renters, nonprofits, and businesses recovering from these tragic events.
• Deliver Equitable Access to Counseling and Training Resources: The President’s Budget proposes $20 million for the Community Navigator Pilot Program, which works with community organizations to provide and amplify awareness of free and low-cost business counseling and training resources. Community Navigators have reduced resource and access barriers for underserved communities, including veterans, women, rural communities, and communities of color.
• Build Capacity in Innovation and Government Contracting Opportunities: The President’s Budget proposes $30 million to support the SBA’s Growth Accelerator Fund Competition, Regional Innovation Clusters, and the Federal and State Technology Partnership Program. These programs provide entrepreneurs at various technical readiness levels with access to the tools, networks, and services they need to commercialize cutting-edge innovations and bring solutions to the market. The Budget also proposes $15.5 million to support veteran and service-disabled veteran-owned small business (SDVOSB) certifications and recertifications.
• Streamline processes and modernize customer experience: The President’s Budget focuses on continuing to modernize and streamline the SBA’s customer experience across SBA programs and processes. Building on the successful launch of the enhanced Lender Match tool, the MySBA Unified Lending Portal, the VetCert program, and the MySBA account, the next stage in unifying the customer experience is the development of a unified small business certification system. By integrating SBA certification programs like 8(a) Business Development, HUBZone, Women?Owned Small Business, and Veteran?Owned Small Business Certifications into the MySBA structure, small businesses will have one streamlined point of entry to apply for multiple certifications and access their information.
• Support Prudent Oversight and Fraud Risk Management: The President’s Budget provides resources necessary for the SBA and OIG to continue to effectively manage, oversee, and investigate potential fraud and unqualified recipients in the agency’s COVID-19 relief programs.

For more information about the SBA’s loan programs, financial assistance, and other services, visit www.sba.gov.

SOURCE: https://www.sba.gov/article/2024/03/11/sba-administrator-guzman-lauds-president-bidens-budget-fiscal-year-2025-highlights-impact-small