President Trump’s administration has gutting business development grants, which were established to support small businesses.
In the first half of this year, the Trump administration cut the budget of Business Development Corporation, which helps small businesses get loans, expand their workforce, and hire people.
The $30 million in funding for the program was slashed from $500 million to $350 million, which means the government will no longer provide funding to nearly 500,000 small businesses across the country.
Trump’s administration announced the changes in March, saying the BDC program has been “disappointing to all involved.”
In a statement to The Hill, BDC spokesperson Jessica Mazzucchelli said the organization was “disappointed” in the cuts.
“We have long championed the mission of BDC to promote entrepreneurship and entrepreneurship-driven economic development,” Mazzuchelli wrote in a statement.
“BDC has played a critical role in our nation’s economic recovery and will continue to play a vital role in creating jobs and economic opportunity for all Americans.”
While the Bdc program is no longer in place, it has become a target for Republicans.
On Wednesday, House Speaker Paul Ryan (R-Wis.) told reporters the budget cuts to BDC will “blow up our business development pipeline.”
Ryan said the BDA funding “has been an important source of support for the small businesses and entrepreneurs that are in our country today.”
Ryan has long championed small business.
In 2015, he signed a bill into law that made it easier for businesses to apply for a loan through the BDI.
But in May, the bill was struck down by the U.S. Supreme Court.
In that case, the justices ruled that the BDO funding program was unconstitutional because it was funded by a federal tax subsidy that was meant to be reserved for “the poor and needy.”
The court has not ruled on the Bda program yet.
In any case, it appears the Trump Administration will continue its cuts to the BdA program.