Freeze ~$1B SBA budget, rank programs, terminate ineffective ones; rein in SBLC expansion
Mandate orders a six-month cost-effectiveness ranking report to Congress, holding the ~$1B budget constant meantime then terminating/consolidating ineffective programs; warns against expanding licensed SBLCs, ‘Mission-Based SBLCs,’ and dropping loan-authorization requirements amid fraud fallout.
Mandate
Mandate Ch. 25 (SBA) — Budget: comprehensive review within six months ranking programs by cost-effectiveness; hold ~$1 billion budget constant until report considered, then terminate ineffective programs/consolidate/reallocate (e.g., to Advocacy) or reduce budget; Personnel Challenges: rein in expansion of SBLCs, Mission-Based SBLC, and removal of loan-authorization requirements while fraud-devastated.
Undo plan
1) Use program evaluation to improve—not automatically shrink—capital access for creditworthy small firms.
2) Fix SBLC oversight and authorization controls before any expansion.
3) Protect Office of Advocacy and core 7(a)/504 capacity in reallocations.
4) Publish the ranking methodology for comment.
5) Verify: OIG fraud metrics and program ROI dashboards.