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Lawmakers warn proposed cuts to SBA entrepreneurial programs would harm SCORE, SBDCs and WBCs
Summary
Members of the House Small Business Committee told the SBA’s OED associate administrator that an administration budget proposal to eliminate most counseling and training programs risks disrupting services to entrepreneurs; lawmakers cited local impacts, outstanding reimbursements and called for clearer communication and protections in any reforms.
Lawmakers told the Small Business Administration’s Office of Entrepreneurial Development on the House floor that proposals in the administration’s fiscal plan to eliminate 15 of 16 counseling and training programs could jeopardize services that support entrepreneurs nationwide.
Ranking Member Velasquez opened the hearing expressing alarm that resource partners serving women, veterans, rural and minority entrepreneurs had been targeted for elimination, and she accused the administration of withholding congressionally approved funds that disrupted delivery. "At a time when Main Street needs our support, this administration's action demonstrate a profound disconnect," she said.
Multiple members offered local examples of harm from delayed funding: Representative Tran described retrieving nearly $3,000,000 for Orange County resource partners only after congressional intervention; Representative Cisneros and others told the committee they’d heard business owners report rising costs and uncertainty that make assistance programs crucial. Members urged the SBA to ensure paused or restructured programs maintain continuity of services for grantees that serve vulnerable and small employers.
Fitzpatrick declined to endorse reauthorizing or expanding programs in public testimony, saying the agency "supports the president's budget" and will administer whatever funds Congress appropriates. He argued the agency must make hard choices to reduce duplication, address program design inefficiencies and encourage resource partners to raise nonfederal match funding.
Members pressed Fitzpatrick for specifics on how the SBA would protect grantees from administrative delays during modernization and for commitments to restore outstanding payments. Lawmakers asked for public documentation of any fraud or misuse that prompted the pause; Fitzpatrick pointed to targeted examples (the Binational Institute of Human Development in Illinois) and described multi-year file and website reviews to check compliance.
The committee did not pass legislation at the hearing but members signaled intentions to pursue bipartisan fixes—several mentioned bills to reauthorize or improve SBDC and WBC programs—and requested follow-up materials from the SBA to inform potential oversight or legislative responses.
The hearing underscored a core tension: lawmakers who champion resource partners for their local impacts and measurable returns on investment pressed the agency for safeguards and timetables, while the agency emphasized system fixes, controls and program consolidation to reduce the risk of waste, fraud and abuse.
