Small Businesses Will Suffer Collateral Damage Due to Bush Budget

Small Businesses Will Suffer Collateral Damage Due to Bush Budget

WASHINGTON, D.C. - Rep. Raúl M. Grijalva (D-AZ), a member of the House Small Business Committee, today joined his Democratic colleagues in releasing their annual report analyzing the impact of the FY 2006 budget proposal on small business programs government-wide. Small business programs again are bearing a disproportionate amount of cuts in the budget.

Said Rep. Grijalva, "I am proud to stand here today and fight on behalf of small businesses, which are the backbone of the American economy. I am disappointed and even outraged; that such a fight is necessary. The Administration's proposed FY06 budget is anti-small business, anti-entrepreneur and it flies in the face of logic. Our nation is weathering difficult economic times and it makes no sense to cut back or terminate programs designed to support small businesses, which given proper support, would drive our economy forward."

Out of the 100 programs government-wide that offer small business assistance, such as access to affordable capital, entrepreneurial development and technical assistance, this year's report documents over 50 of these programs, up from 35 last year, that were slated for severe cuts or elimination. The overall average cut for these programs is nearly 80 percent, up 10 percent from the 2004 budget. Sixteen programs are facing severe funding cuts and another 35 are slated for termination. Agencies hit the hardest were Small Business Administration (SBA), with 14 programs; Department of Agriculture (USDA), with 12 programs; and Housing and Urban Development (HUD), with 8 programs.
Rep. Grijalva expressed deep concern about the effects that program cuts would have in his district.

"My district, the 7th district of Arizona, is disproportionately affected by the budget. We are going to suffer major collateral damage. Among its numerous and devastating cuts, the President's budget zeros out programs such as the Brownfields Economic Development Initiative. Small business has played a vital role in our district by helping turn brownfields into safe, vibrant commercial areas and in bringing needed jobs to the distressed areas that need them the most. I will not stand by and watch the President try to save pennies at the expense of thousands of Southern Arizonans, whose quality of life is of immeasurable worth. This cut is an affront to small businesses as it denies them the opportunity to invest and subsequently grow financially from brownfield redevelopment. But more so, this cut is ultimately an attack on the quality of life of our community."

Rep. Grijalva also expressed indignation over the termination of Empowerment Zones.
"Empowerment Zones in Southern Arizona have had the dual benefit of contributing to the development of successful small businesses and in playing a crucial role in providing jobs and revitalizing areas of our district. The FY06 budget zeros out Empowerment Zones. I will not stand by as years of hard work, helping underserved areas of our community redevelop and thrive, are tossed aside with absolute disregard for all those who have come to rely on the benefits provided by Empowerment Zones."

"This budget is bad for our economy, it is bad for small business and it is bad for the citizens of our district. I will work hard to correct the injustices and inequalities it proposes."

http://www.house.gov/grijalva/press/press_releases/pr_021605.html