SBA restricting spending during budget battle

by Melissa Wilson

SBJ Staff

Entrepreneurs planning to take out Small Business Administration loans in the near future may want to consider applying before Oct. 21, when a temporary government operations funding bill for the fiscal 2000 budget year expires.

Congress failed by Oct. 1 to pass 13 spending bills that affect the government's operations and the start of the fiscal 2000 budget year. Congress is now working to pass them by a new Oct. 21 deadline, which may or may not be extended again to prevent a government shutdown.

"Operating under a continuing resolution like we are right now, they (SBA administration) don't know how much to fund us ... whether to fund us under what the agency asks for, what the House version of the bill says, what the Senate version says or last year's level. We're told to restrict travel and expenditures and cut spending to the minimum," said James Combs, Springfield SBA branch manager.

The SBA is "continuing to fund loans at this point