Trump Targets the Small Business Administration
Shanghai Cafe, Centralia, Washington. Photo: Jeffrey St. Clair.
There is growing opposition to the Trump administration’s bid to radically slash federal spending and employment. We turn to Carolina Martinez, who joined the California Association for Micro Enterprise Opportunity (CAMEO) Network as its CEO in 2018. She has served on the Pennsylvania Governor’s Advisory Commission on Latino Affairs, the Berks County Latino Chamber of Commerce board, and the Kutztown University Foundation board, and views a recent proposal to shrink the workforce of the U.S. Small Business Administration with alarm. Carolina Martinez and I conducted the interview below via email.
Seth Sandronsky: According to a March 21 news release, the U.S. SBA plans: “To return to its founding mission of empowering small businesses and to restore accountability to taxpayers, the agency will reduce its workforce by 43% – ending the expansive social policy agenda of the prior Administration, eliminating non-essential roles, and returning to pre-pandemic staffing levels.” Can you respond?
Carolina Martinez: These proposed SBA cuts are deeply concerning, especially given the timing. We’re experiencing a historic entrepreneurial surge, with over 21 million new business applications filed in just the past four years.
SS: Disasters such as Hurricane Helene last September and this month’s tornado outbreak are devastating communities, leaving paths of death and destruction. Federal aid is crucial to rescue and rebuilding efforts. Not to worry about SBA spending cuts, though. “Core services to the public,” according to SBA’s March 21 news release, “the agency’s loan guarantee and disaster assistance programs, as well as its field and veteran operations, will not be impacted.”
CM: Any SBA reduction in workforce must not impact critical disaster relief, small business lending programs, and other small business support. Programs should continue at least at current levels, so that small businesses will have the capital, coaching, and connections they need to thrive, create jobs, economic activity and tax revenue.
SS: Can you respond to the challenges that small businesses faced before proposed SBA spending reductions?
CM: We know that approximately half of all new businesses don’t make it past their fifth year. However, when entrepreneurs receive proper guidance on business planning, financial management, and marketing strategies – services the SBA provides – their chances of success improve substantially. Limiting these resources would affect many small business owners.
SS: Dreams of being one’s own boss can collide with marketplace realities. For one instance, making ends meet as a self-employed freelance journalist is no golden staircase to prosperity and stability.
CM: Small businesses represent the backbone of our economy, employing almost half of American workers and generating most of our new jobs. Access to affordable capital and expert guidance from the SBA helps our small businesses grow, which is why we’ve historically seen broad bipartisan support for the SBA. We hope the administration will reconsider these proposed workforce cuts to ensure continued support for Main Street businesses.
SS: Thank you.
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