It seems all that anyone is talking about lately, especially those in Washington, are the sequester cuts.
The latest in a series of political battles in Washington, the sequester is a series of automatic cuts to areas such as defense, education, and healthcare that were negotiated in the last fiscal cliff battle. Needless to say, many are worried about those impacts, and small businesses are going to take a huge hit now that the March 1 deadline to find an alternative has passed.
According to whitehouse.gov, small businesses create a full two-thirds of all American jobs –jobs that are created thanks to help from small business loans from the Small Business Administration and other federal agencies. It seems that helping small business growth is something that can be supported across the political aisle as small businesses are lauded for doing the nearly impossible work of keeping small community businesses flourishing in tough times.
Unfortunately, the sequester is going to lop about $902 million in loan guarantees off the federal budget, making it even harder for small businesses to get off the ground and succeed. Given the impact small businesses have on the overall economy and the challenges small businesses have faced in the past year, it’s surprising that these cuts have come to pass in the first place.
Regardless of your political stance, it’s clear that the impact of the sequester cuts will fall hard on small businesses, and beyond, in the coming weeks and we are hopeful that a more permanent less devastating solution can be reached. What do these cuts to small business loans mean for your business? What are your thoughts on the sequester cuts overall? Sound off on this in the comments!