Cultivating The Leader Within - Minority Enterprise Executive Council

Business News
Obama Elevates SBA
to Cabinet-Level
Agency
By Patricia Orsini
Patricia Orsini
Small Business Editor,
President Barack Obama today announced that the head of
the U.S. Small Business Administration, Karen Mills, will be
the newest cabinet member.
He made the announcement that the SBA would become a
cabinet-level agency in front of small-business owners at the
White House. The
head of the SBA
was a cabinetlevel
position
under the Clinton
Administration.
The announcement
was part of
a larger proposal
that would
combine the SBA
with five other
government
agencies that
focus on business
and trade.
Those organizations
include
the Commerce
Department’s
President Barack Obama
core business and
trade functions;
the Office of the U.S. Trade Representative; the Export-
Import Bank; the Overseas Private Investment Corporation;
and the Trade and Development Agency.
These agencies combined would, according to Obama,
create a more efficient climate for business development
and entrepreneurship. In addition, according to AP, the
merger would save the federal government $3 billion over 10
years by eliminating duplicate costs and human resources.
Barry Sloane, CEO of the Small Business Authority, applauded
the move. “I think it’s constructive for two reasons,” he told
CNBC.com. “By doing this, Obama is making a statement
that small business is important. And, he’s making good on
his promise of reducing overlapping agencies, which will
reduce government spending.”
The proposal to merge the agencies must be approved by
Congress. If the merger is approved, the SBA would no
longer be in the cabinet.
Sloane the SBA has been an engine for recovery from the
recession. “Under the Obama Recovery Act, he increased
loan size from the SBA from $2 million to $5 million, and
increased the amount of government guarantee on those
loans, which has been helpful to business owners. This
proposal is another acknowledgment of the importance of
small business.”
House Small Business Committee Chairman Sam Graves
(R-MO) said in a statement today that “I look forward to
examining the [proposed merger] further, and I hope the
President will work very closely with Congress before
finalizing any changes.”
While he was non-committal on whether he would vote
to approve the changes, he said: “Decreasing the size of
government and reducing bureaucracy is something that I
support in principle, however, it is important that any effort
to make significant changes to federal commerce and trade
programs be done carefully, and in a way that protects
America’s small businesses.”
Minority Enterprise Advocate • March – April 2012
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