President Trump is planning to cut funding to 17 federal agencies and programs, 5 of which directly affect businesses, including small businesses. Tweet This It is unclear at this time whether these business-oriented programs will receive less funding or be completely eliminated. Trump’s budgets aren’t expected to be finalized until mid-April.
The business budget cuts could include:
- Minority Business Development Agency
- Economic Development Administration
- International Trade Administration
- Manufacturing Extension Partnership
- Overseas Private Investment Corporation
Learn more about each program below.
Minority Business Development Agency
The MBDA was created to help minority owned companies “with the capital, contracts, and markets they need to grow.” For example, if a minority-owned business needed capital to expand operations, hire more employees, fulfill contracts, or buy new equipment, the MBDA could help the company get the funding it needed. The agency also tries to advocate for minority-owned businesses with policy makers.
Economic Development Administration
The EDA was created to support development in economically distressed areas. According to its website, it is “the only federal government agency focused exclusively on economic development” which “plays a critical role in fostering regional economic development efforts in communities across the nation.” EDA investments and grants often help create jobs and support development that helps spur entrepreneurship in distressed communities.
International Trade Administration
The ITA was created to help American businesses sell products to overseas markets. According to its website, the ITA “strengthens the competitiveness of U.S. industry, promotes trade and investment, and ensures fair trade through the rigorous enforcement of our trade laws and agreements.”
Manufacturing Extension Partnership
The MEP is a public-private partnership that was created to “enhance the productivity and technological performance of U.S. manufacturing.” The MEP focuses on three main areas: growing, improving and impacting. Through its services, the partnership works with manufacturers to help contribute “to the growth of well-paying jobs, dynamic manufacturing communities, and American innovation and global competitiveness.”
Overseas Private Investment Corporation
The OPIC uses both loans and loan guarantees to address “critical developmental challenges.” It also works with the private sector and “helps U.S. businesses gain footholds in emerging markets, catalyzing revenues, jobs and growth opportunities both at home and abroad.”
Time Magazine outlined what each of these programs is actually costing Americans (usually less than $2 each.) You can view that information and more in The Times money section.
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