A congressional proposal would redirect about $5 billion in unspent COVID-19 related funds allocated for small business aid programs to healthcare as part of an effort to limit the federal deficit, reports The Wall Street Journal.
The proposal is “not in alignment with the professed need of small businesses and the professed desire on both sides of the aisle to help small businesses,” said John Arensmeyer, chief executive of the Small Business Majority, an advocacy group.
Arensmeyer said he is most concerned about the $2.13 billion in budget authority the deal proposes taking back from the State Small Business Credit Initiative, a Treasury Department program that Congress originally provided $10 billion through a coronavirus-aid package passed last year. It is designed to direct money to states, territories and tribal governments for programs that provide venture capital or encourage private lenders to issue loans to small firms.
The proposal comes at a time when small businesses are battling supply chain snarls and rising business costs. Full Story (Subscription Required).
Related: Small Business Loans Further Prioritized; New York Reopens Small Business Grant Recovery Program.