SBA’s 2000 Budget Is OKd at 7% More Than Fiscal 1999’s

The sky didn’t fall on the Small Business Administration after all.

Proposed budget cuts that had agency officials scurrying around Capitol Hill warning of layoffs didn’t come to pass last week after Congress approved the SBA’s budget as part of a giant spending package wrapping up the 2000 budget.

The SBA ended up with $877 million for the 2000 fiscal year, about 7% more than fiscal 1999. Though that’s a far cry from the $995-million wish list compiled by SBA Administrator Aida Alvarez, it represents a major turnaround from the deep spending cuts bandied about in House and Senate appropriations committees earlier this year.

“This is a real victory,” said associate administrator Debra Silimeo.

That depends on where you’re standing, of course.

Although the agency had virtually all of its operating budget restored to 1999 levels, thus avoiding the need for layoffs, lawmakers tightened the screws on new programs sought by Alvarez, including her much-touted New Markets initiative. Alvarez had made the program to provide venture capital and technical assistance to inner-city businesses a centerpiece of the agency’s outreach efforts. But Congress allocated only about one-third of the $48 million Alvarez sought to get it up and running.

Overall, the new budget enables the agency to extend $19 billion in small-business loan guarantees and disaster assistance in fiscal 2000, about $5 billion more than fiscal 1999.