This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Cramer's Action Alerts PLUS - See his portfolio and get alerts BEFORE every trade. Learn more NOW!

SBA Head: Agency Will Avoid Major Blow From Cuts

By JOYCE M. ROSENBERG

NEW YORK (AP) â¿¿ The head of the U.S. Small Business Administration says she doesn't expect operations at the agency to be dramatically affected by automatic federal budget cuts scheduled to begin March 1.

Administrator Karen Mills said that the SBA won't need to furlough employees because it already cut staffers through early retirements. "We are down the requisite amount of expenses, but we're not having to furlough to do it," Mills said in a Friday meeting with reporters.

Mills also expects little impact on the amount of loans the SBA guarantees. According to the White House, SBA loan guarantees would be cut by up to $902 million. In the fiscal year that ended Sept. 30, the agency guaranteed $30 billion. But Mills said demand for one type of loan, known as the 504 loan, is expected to fall this year, and that will likely mean the agency will be able to meet demand for its other loans. There was a sharp increase in 504 loans last year because of a now-expired provision allowing them to be used as a mortgage refinancing tool.

"We are not slowing down giving loans to anyone," Mills said.

Mills says that many small businesses have already felt the impact of the budget cuts that are known, in congressional parlance, as sequestration. She noted that contracts at the Pentagon, the agency that has the biggest federal contracting budget, were down sharply in December in anticipation of the budget cuts.

"Small businesses suffered a large part of that because spending was delayed in anticipating of sequestration, and so they didn't get their contracts," she said.

Mills announced last week that she plans to leave the SBA this year, but would stay in her post until a successor is chosen and sworn in. She declined Friday to speculate on who that might be. Mills, who worked for private equity firms before coming to the SBA in 2009, said she's undecided about what she'll do next.

Copyright 2011 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG

Markets

DOW 18,164.30 -124.33 -0.68%
S&P 500 2,101.23 -16.16 -0.76%
NASDAQ 4,963.56 -44.5360 -0.89%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs