WASHINGTON – Feb. 12, 2013 – The word is “sequestration,” and it means a cut in government funding that becomes mandatory on March 1 and impacts most government programs. Small Business Administration (SBA) loans could see a $540 million decline, according to Kent Hoover, American City Business Journals’ Washington bureau chief.

The SBA hit could hurt small businesses and the real estate agents who help them get started. With many banks slow to lend money to risky small business ventures, the SBA has played an increasing role in helping them get established. In South Florida alone, SBA lending increased $48.1 million in the most recent fiscal year and totaled $395.1 million.

The March 1 mandatory cuts are related to the fiscal cliff agreement Congress inked at the end of 2012. And while a number of lawmakers have talked about a compromise to keep at least the strictest cuts from becoming effective, some think the positive aspect of a government cuts offsets negative aspects. The total cut is about $85 billion.

Source: South Florida Business Journal, Feb. 11, 2013; Brian Bandell

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