SBA Faces Changes Under Obama Plan
Friday, January 13, 2012
Small Business Administration will be consolidated into a larger general
agency, as part of a new Obama administration plan announced Friday.
move would combine the SBA with five other government offices -- the Department
of Commerce's core business and trade functions, the Office of the U.S. Trade
Representative (USTAR), the Export-Import Bank (Ex-Im Bank), the Overseas
Private Investment Corporation (OPIC) and the Trade and Development Agency
(USTDA) -- to form a single agency. The Washington Post estimates the changes
will eliminate an estimated 1,000 jobs and save $3 billion over 10 years. While
the SBA would no longer be a standalone agency, the SBA administrator position
is expected to be elevated to cabinet level, as it was under the Clinton administration.
government we have is not the government we need," Obama said. "It’s
redundant and inefficient. With the authority I am requesting today, we could
consolidate them all into one department."
to a White House statement, this department will be "where entrepreneurs
can go from the day they come up with an idea and need a patent, to the day
they start building a product and need a warehouse, to the day they are ready
to export and need help breaking into new markets overseas. The new Department
will lead the development and implementation of an integrated, strategic,
government-wide trade effort and have a focused capacity to help businesses
grow and thrive."
McCracken, president and CEO of National Small Business Association, responded
in a statement, "While NSBA is firmly committed to reducing the deficit,
there simply aren't enough details available yet to know if this will be a net
win or loss for small business. On the one hand, reorganizing federal agencies
to create a 'one-stop-shop' for America's small businesses could streamline
processes and make accessing information and assistance much easier. On the
other hand, such a reorganization could minimize the emphasis placed on small
business by the federal government and lead to an even greater imbalance toward
promoting the interests of large businesses over those of small business.
proposal to consolidate agencies must ensure that SBA, Ex-Im Bank, OPIC, USTR
and USTDA remain thriving vehicles for the U.S. to promote entrepreneurship,"
McCracken added. "Anything short of that would be a disservice to
America's small businesses and the U.S. economy."
The Huffington Post