Small Business Administration
The Small Business Administration (SBA) was able to implement sequestration reductions without furloughing employees because of savings it obtained from its 2012 early retirement offering and a partial hiring freeze, according to officials. Though sequestration cut SBA’s loan programs, the reduced funding level for these programs was sufficient for SBA to meet the demands of qualified loan applicants. However, because SBA’s disaster loan funding can be used in future years, without additional funding the sequestration cuts will reduce the amount of disaster loans SBA can make in future years. SBA estimated that reduced funding for SBA grants to partners that provide support to small businesses has decreased the number of businesses served by 2 to 25 percent, depending on the program.