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President Elevates SBA Chief, Proposes Changes

Posted At : January 20, 2012 1:01 PM
| Posted By : information@mcb-cpa.com
Related Categories: Closely Held Business, Private Equity-SBICs and Venture Capital

President Obama has announced that he is elevating the head of the U.S. Small Business Administration, Karen Mills, to a Cabinet-level position. The move was greeted with applause by small-business owners present at the White House for the announcement. According to Mr. Obama, the purpose of the move was to ensure that "small-business owners have their own seat at the table."

Mills is credited with reducing lender paperwork for SBA-backed loans, enforcing stricter oversight of government contracting and rolling out several laws that facilitated more lending to small businesses. Other administrations have elevated people to cabinet-level status, which is mostly a symbolic way of saying they and their subject areas are considered important.

The announcement accompanied a broader proposal to combine the SBA with five other government offices to become a single, streamlined agency. The proposal would merge the Department of Commerce's core business functions with the Small Business Administration, the Office of the U.S. Trade Representative, the Export-Import Bank, the Overseas Private Investment Corporation, and the Trade and Development Agency. The new agency would replace the Department of Commerce.

Under the broader plan, the SBA administration would no longer be in the Cabinet following the reorganization.

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