News
Save the SBA
By Lloyd Chapman
Pittsburgh Tribune-Review
June 8, 2006
I was extremely disappointed to read the editorial "SBA is DOA" (June 5 and PghTrib.com), which argued that there is no need for the Small Business Administration's government-sponsored small business lending program.
This partisan political propaganda was obviously inspired by the anti-small business rhetoric of Veronique de Rugy of the American Enterprise Institute, an extremely conservative organization funded by Fortune 500 corporations, which would like nothing better than to see an end to programs for small businesses.
Ms. de Rugy is one of a very few people in the world who believe the SBA should be closed. I am not aware of any member of Congress who supports her position. Furthermore, her statistics are flawed and do not represent the true benefit of SBA loans.
According to David Bartram, president of U.S. Bank's SBA Division, SBA "accounts for 40 percent of all long-term small business loans made in America." This effectively refutes de Rugy's claim that few small businesses benefit from the government's lending program.
The SBA, which ensures that 23 percent of federal contracts (worth $119 billion) are directed to small businesses, is the only agency that exists to address the needs of the 23 million small, women-owned, minority-owned and veteran-owned companies in the United States today. President Bush has repeatedly pledged his undying support for small businesses and the SBA has the support of Congress and the American people.
Lloyd Chapman
Petaluma, Calif.
The writer is president of the American Small Business League.
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