By Paul Tuthill
http://stream.publicbroadcasting.net/production/mp3/wamc/local-wamc-956459.mp3
Agawam, MA – A Massachusetts Congressman is critical of President Obama's proposal to cut the budget of the Small Business Administration. Supporters of the SBA say its programs are needed to help small businesses that survived the recession heal wounds and grow WAMC's Pioneer Valley Bureau Chief Paul Tuthill reports
With an boost from federal stimulus funds, the SBA's budget grew to 1 point 8 billion dollars. President Obama fiscal 2012 federal budget proposal would cut that by 45 percent, something U. S. Representative Richard Neal of Springfield said Tuesday he would not support
Neal said there have been many what he called good news stories involving the SBA through out Western Massachusetts. He highlighted one in Agawam, where a one point 9 million dollar SBA guaranteed loan to a family owned printing company saved 14 jobs.
Neal said Millennium Press, which has been in business since 1996 was on the verge of closing. The company had borrowed to expand and upgrade its technology just before the recession hit in 2008, and the printing business took a downtown .. The owners contacted Neal's office, and the congressman asked the SBA to get involved
Millennium president James Sullivan said with the new loan the company has restructured its debt and is beginning to see business pick up .
The SBA saw a flood of loan applications in December as businesses and lenders rushed to take advantage of special provisions authorized under the stimulus act which expired at the end of 2010..To encourage more lending to businesses, the SBA was able to wave fees and it could guarantee up to 90 percent of a loan..
Even with less generous terms now, the SBA is averaging 25 loans a week in Massachusetts according to the agency's district director, Robert Nelson
Nelson would not comment on how President Obama's proposed budget might impact SBA programs.
Gary Besser, the SBA loan officer at New Alliance Bank which loaned to Millennium Press, said small businesses will need the government guaranteed loan programs as they try to ramp up from the recession
The latest employment report for the Springfield area shows the economy is still sluggish..The Massachusetts Executive Office of Labor and Workforce Development reported Tuesday that the unemployment rate in the Springfield area was 10 point 3 percent in January..up from 9 percent in December..January's statewide unemployment rate was 8 point 3 percent..