Velazquez Comments on Small Business Administration Budget for Fiscal Year 2011

WASHINGTON, Feb. 2 /PRNewswire-USNewswire/ -- Rep. Nydia M. Velazquez (D-NY), the Chairwoman of the House Committee on Small Business, released the following statement regarding the Administration's Fiscal Year (FY) 2011 budget for the Small Business Administration (SBA):

"In last week's State of the Union address, President Obama made clear the importance of small businesses to our economic recovery.  Given the pivotal role small businesses play in job creation, it is important that the President's FY 2011 budget reflect the priorities of our nation's small firms. 

"The Small Business Administration is the sole agency tasked specifically with meeting small business needs and it must have adequate resources to assist entrepreneurs. Whether it be advising businesses weathering difficult economic conditions or assisting those starting a venture, the SBA must ensure demand for technical services are met.  Studies repeatedly demonstrate that the agency's programs not only help create jobs, but also generate revenues that reduce the deficit in the long term.

"Given the ongoing credit crunch, the budget should also help make loans more affordable and available for entrepreneurs.  The SBA is responsible for providing small businesses with over $28 billion in capital, annually.  Traditionally, these initiatives offer small businesses additional financing options when banks stop lending.  While I am pleased that the President has made small business access to capital a priority, we must ensure the FY 2011 budget does not increase costs for small business borrowers.  I look forward to working with the Administration to address that issue. 

"In light of current fiscal restraints, the President has also advocated eliminating ineffective and wasteful programs.  American families are making tough decisions during these difficult economic times and the SBA should do the same, prioritizing programs that have a proven track record of supporting small business job growth.  The President's budget offers an important blueprint for getting our economy back on track.  In coming weeks, Congress will be examining it carefully and looking at all options for strengthening and improving the SBA."

SOURCE Chairwoman Nydia Velazquez, House Committee on Small Business