President Trump’s proposed 2018 budget would cut the Small Business Administration’s budget by $43.2 million, or a 5 percent decrease from the 2017 annualized continuing resolution.  The SBA is currently funded at $869.7 million.

The SBA ensures that small businesses have the tools and resources needed to start and grow their operations, maintain U.S. competitiveness and help grow the economy.

The Office of Management and Budget (OMB)  says the agency will be more efficient because reductions in spending are being targeted at “redundant programs” and eliminating programs that deliver services which OMB says are better provided by the private sector.

One area, in particular, that could absorb the brunt of the cuts, is the elimination of SBA grant programs such as PRIME technical assistance grants, Regional Innovation Clusters and Growth Accelerators.  The feds  currently appropriate $12 million towards the programs.

OMB says the private sector provides similar, presumably  more effective  mechanisms to foster local business development and investment.

Trump’s budget would maintain $28 million in microloan financing and technical assistance to help serve, strengthen and sustain the smallest of small businesses and startups. The proposed budget would also support more than $45 billion in loan guarantees to help small businesses get affordable capital to start or expand their businesses.

All told, OMB says the cuts would actually strengthen SBA’s outreach center programs by reducing duplicative services, coordinating best practices and investing in communities that would benefit from SBA’s business center support.

Congress must approve the White House’s proposed budget, which many critics have already said is DOA on Capitol Hill. The budget contains big increases for defense, homeland security and veterans affairs.