President Trump will send a budget proposal to Congress on Thursday that could reorganize the nation's priorities by putting an emphasis on defense spending while cutting funds for numerous agencies--including some important to the fortunes of business owners.
Preliminary budget documents show the White House wants to cut $43.2 million, or about 5 percent, from the Small Business Administration's budget, according to The Washington Post. The reduction would wipe out $12 million worth of technical assistance grants and other programs the administration believes already are adequately supplied by the private sector. It also would decrease the amount of loan guarantees to small-business owners from $46 million to $45 million.
"The president is committed to assisting small businesses through reducing the regulatory tax burdens that can impede the development of small firms," the Trump administration told the Post.
Trump advisers reportedly also have explored tightening the Commerce Department's budget by about 18 percent. In all, Trump identified 62 programs and agencies that would be eliminated, including two from the Department of Commerce.
The Economic Development Administration, which now receives $221 million a year, is on the chopping block. Trump's proposed budget says the EDA has "limited measurable impacts and duplicates other federal programs," according to USA Today. What's more, the White House says the Minority Business Development Agency, which receives $32 million a year, is duplicative of other programs in the Small Business Administration.