Home >> Newsroom

Print

April 10, 2014

Velázquez: Republican "Ryan Budget" Would Harm Nation's and New York's Small Businesses

Washington, DC - Rep. Nydia M. Velázquez (D-NY), the top Democrat of the House Committee on Small Business, released a report today detailing the severe harm that the Republican "Ryan Budget" for Fiscal Year 2015 would impose on small businesses. The text of her remarks are below. The full report may be downloaded here.

"If there is one number that you take away from this press conference, it is that the Ryan Budget would cost our economy well over a quarter a million small business jobs. In New York state it would mean the loss 20,000 small business jobs, 8,300 of them in New York City. Far from being a "Path to Prosperity," this budget is actually far more of a "Path to the Poorhouse."

"Because of small businesses important role in our economy, it is important that we craft a federal budget that supports their continued development. Unfortunately, in this regard, the Ryan Budget clearly fails. According to a report released today by Committee on Small Business Democrats, the Ryan Budget would dramatically reduce federal assistance and support for small firms across the country. It finds that small business resources would be cut by nearly $11 billion.

"A wide range of resources would be gutted – from contracts, to access to capital, to international trade assistance, to job training. In New York alone, lending to our area small firms would drop by almost $1 billion. Small companies that have the federal government as a customer would also take a hit as procurement opportunities for New York City businesses would fall off by $4 billion.

"What will be the end result? Lower startup rates and fewer jobs.

"For small businesses to thrive, they require an environment that is conducive for growth. Many of the programs detailed in the Committee's Report are critical to manufacturers, tech firms, retailers, and the service industry. Studies have shown that many of them generate more than three dollars in additional federal revenue for every dollar spent. What type of economic policy says that you cut programs that generate net positive income for the Treasury? This begs the question. Is it the Republicans goal to support good programs or are they just imposing one party's narrow political ideology on the entire nation. This is simply not a blueprint for job growth.

"Republicans always claim that they are champions of small businesses. They opposed the Affordable Care Act because – they claim -- it will cost small businesses jobs. They opposed the Dodd-Frank financial regulatory reform because – they say -- it will hurt small business lending.

"You would think that with all this rhetoric, small businesses would be their top priority. But then you see what they propose in the Ryan Budget you see that their rhetoric does not match reality. The fact is that under the Ryan plan, small businesses would be among those losing the most.

"Small businesses are the foundation of our economy – and the Ryan Budget takes a sledgehammer to them. We can do better. We must do better – and this is why I will be urging my colleagues to reject the Ryan Budget and enact a true pro-growth budget."


###