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The effect of federal budget cuts on small business is becoming clearer. The Small Business Administration fat-trimming includes a 25% cut in direct and guaranteed loans, elimination of interest subsidies, termination of funding for small business development centers, drastic cuts in programs for women-owned businesses and other "special interests," and elimination of disaster loans for other than physical disasters (e.g., an end to regulatory compliance loans). If SBA interest rates are permitted to rise to market levels, "we're better off abolishing the whole program," commented Senate Small Business Committee chairman Lowell Weicker (R-Conn.).Budget Director David Stockman responded that he was more concerned with reducing interest rates for the 90% of small businesses that are now paying market-level rates.