Small businesses have a difficult task, driving the engine of the American economy. It’s not work that needs further complication.
Unfortunately, the sequester could do just that. The latest in a series of obnoxious political battles in Washington, the sequester is a series of automatic cuts to areas such as defense that were negotiated in the last fiscal cliff battle. Needless to say, many are worried about those impacts, and small businesses are going to take a huge hit now that the March 1 deadline to do something about the sequester has passed.
According to whitehouse.gov, small businesses create a full two-thirds of all American jobs, which is truly excellent. That job creation is helped by small business loans from the Small Business Administration and other federal agencies, one use of federal dollars that doesn’t tend to be all that controversial. Across the political spectrum, in fact, small businesses are lauded for doing the nearly impossible work of keeping small community businesses flourishing in tough times.
Unfortunately, the sequester is going to lop about $902 million in loan guarantees off the federal budget. We’re all on board with decreasing spending at the federal level, but this is a deeply misguided cut that actually damages job creation efforts instead of helping them. I’m holding out hope that Congress and the White House can work together to develop something better, but right now, this is what we’re stuck with.
We’re not sure how you feel about the sequester at the end of the day, but the impact on small businesses is undeniable. Join us in reaching out to your Congresspeople and telling them that these cuts to small business loans are unacceptable. With 2013 getting off to a fine start, this isn’t the time to be limiting our small businesses.
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