The Small Business Administration’s budget request for fiscal year 2023 includes some big increases. The budget request has been approved by the Senate Committee on Small Business and Entrepreneurship.
Budget increases could help small business owners looking for training and advice, or access to financing.
The proposal also increases the SBA’s lending authority by $6.5 billion.
As proposed by President Joe Biden, the total amount requested for the SBA budget is $1.06 billion. The budget for fiscal year 2022 was 1,030 million.
Biden will speak on the SBA budget by delivering a pre-recorded message during a virtual summit Friday that closes out National Small Business Week. Here is a summary of their comments:
“Small businesses across America have shaped and embodied our nation’s entrepreneurial spirit and fueled our economy. Today, more than 32 million small businesses employ nearly half of the United States workforce and represent the heart and soul of countless communities.”
Business Development Program Funds
The requested budget includes an increase for Business Development Programs. The 2023 budget is $318 billion, an increase of $28 million from 2022.
The SBA executes the Business Development Programs from its Office of Economic Development (OED). SCORE (Service Corps of Retired Executives) is a resource partner of the OED.
The funds would be used to expand outreach and training, with the goal of expanding the geographic and demographic reach of the program.
The OED also oversees the Small Business Development Center and Women’s Entrepreneur Center programs.
Increased SBA Lending Capacity
The requested budget increases the SBA’s lending authority for the 7(a) loan program by $5 billion. The increase is from $30 billion in 2022 to $35 billion in 2023 (fiscal years).
The budget also increased the SBA’s lending authority for other loan programs by $1.5 billion. The increase is from $7.5 billion in 2022 to $9 billion in 2023.
Get the latest headlines from Small Business Trends. Follow us on Google News.
Image: Depositphotos
