Velázquez Report: Small Firms Harmed by Lack of Long-Term Budget
Washington, DC, January 24, 2018
After Republicans this week passed another short-term funding bill, Rep. Nydia M. Velázquez (D-NY), the top Democrat on the House Small Business Committee, has released a report highlighting the damage that these stopgap bills have on America’s small businesses.
“Lurching from crisis to crisis is no way to govern, and with control of both Congress and the White House, Republicans have no excuse for not passing a regular, long-term budget,” said Velázquez. “Passing stopgap measures every few weeks to keep the government running, instead of a long-term spending bill, results in uncertainty for small firms that contract with the federal government, can potentially disrupt the flow of capital to small companies and, ultimately, undercuts entrepreneurs’ ability to create jobs in local communities.”
Among other findings, the report notes that:
· As long as Republicans fail to properly govern and continue to rely on continuing resolutions (CR), these disruptions and uncertainty in the 7(a) program will impact the ability of small businesses to get loans when they need them.
· A CR prevents federal agencies from long-term planning of new contract solicitations, including those with small businesses.
· If Republicans continue to deny additional appropriations in CRs, the Small Business Administration will be forced to cease making disaster loans to homeowners and businesses in Puerto Rico, Texas, Florida, California, and other disasters across the country.
The report is available online here.