BizSugar.com › Raising Capital › SBA Loan Programs Face Cuts as Credit Crunch Looms

Given the current economic climate, you would think the government would be doing all it can to bolster Small Business Administration (SBA) loan programs. But the Bush administration is proceeding as if it was business as usual. The administration, in fact, is once again proposing substantial SBA budget cuts, as it has every year since the president took office. Excluding new funding for disaster loans, the SBA budget would be slashed by 5.5 percent (adjusted for inflation) over FY 2008's appropriation. The amount may seem small, but the latest round of cuts would amount to a 41 percent reduction since 2001.