What does this mean for small business?
Raising the SBA to executive level status shows Americans that our government is interested in small business. Having the SBA “at the table” will invite much needed discourse resulting in a new understanding of decisions to be made. Impact analysis would be small business inclusive. That’s a good thing. The move to Cabinet-level shows us that the government understands small business represents 99.7% of all employer companies. The move shows us the government realizes that small business is the engine of job growth in our economy. The fact is, small companies, not big companies, will play a leading role in our nation’s economic recovery.
Since 2001, the SBA has seen its budget fall 27%, the largest decrease of any federal agency during that time frame. Maybe this will change.
Many lenders find making SBA loans too complex, cumbersome and expensive. Sen. Snowe, who is working to convince Obama to put SBA to Cabinet-level, plans to introduce a bill that would reduce lending fees and train new SBA lenders on how to use these programs effectively. Among other things.
Wall Street has strong constituencies. Main Street should absolutely be represented in the Cabinet.
Below is a overview is article from bizjournals, but this one is way better: http://tinyurl.com/sbacabinetposition
Business First of Buffalo – by Kent Hoover Bizjournals.com
The Small Business Administration may be restored to Cabinet-level status in the Obama administration.
Fred Hochberg, a leader of President-elect Barack Obama’s transition team for the SBA, makes the case for cabinet-level status in Change for America, a compilation of advice for the new administration collected by the Center for American Progress Action Fund and the New Democracy Project.
As soon as Obama takes office, he should sign an executive order making the SBA a Cabinet-level agency, Hochberg writes. A new SBA administrator should be appointed early as well, he recommends.
That administrator could be Hochberg. He was former deputy administrator at the SBA during the Clinton administration and served briefly as acting administrator. More recently, he was dean of the Milano School at the New School for Management and Urban Policy. Before joining the SBA, he was president and chief operating officer of Lillian Vernon Corp., a catalog and online retailer.