Ritter said he fears pending cuts in the SBA s operational budget would push the agency toward a centralized bureaucracy, leaving inadequate staff in regional offices to assist small businesses and the lenders who serve them. John Canning , president of Parsippany, NJ-based Newcourt Small Business Lending Corp. , said he wasn t opposed to the idea of New Markets lending, but had reservations about the need for a new program. The question in our mind was how to do that. We thought the goal could be achieved through the existing lending institutions that provide SBA loans. We also thought that to the extent tax credits might be available, the credits should be available to all lenders who serve these markets.
Lenders are already there and wish to participate under the current rules.
SBA officials have said that tax credits are not included in the program and are not essential to its success. Meanwhile, SBA officials insist that funding cuts in the Senate appropriations bill would trigger 1,000 agency layoffs, while cuts proposed in the House would require 2,400 layoffs. Officials, including SBA Administrator Aida Alvarez , have said any resulting staff cuts would jeopardize the agency s ability to monitor its loan portfolio and manage lending programs. That s a political smoke screen, Orfield said. He predicted the same outcome in the House.