by Robert Schmad
Three top GOP senators have accused the Biden administration of allegedly diverting money intended for tiny businesses to a “climate fund” in a letter obtained exclusively by the Daily Caller News Foundation.
Senators Joni Ernst of Iowa, James Risch of Idaho and Marco Rubio of Florida sent the letter to Isabel Guzman, head of the Small Business Administration (SBA), accusing her agency of undermining Community Advantage, a program designed to provide loans to tiny businesses, by signing up modern lenders that will focus on “supporting[ing] small businesses to curb climate change.” The group of lawmakers also raised suspicions about the SBA’s recent collaboration with the Environmental Protection Agency’s Greenhouse Gas Reduction Fund, noting that the SBA July 22nd announcement The news of the partnership with a billion-dollar green energy subsidy program comes just after Vice President Kamala Harris became the presumptive Democratic presidential nominee.
“Vice President Kamala Harris is once again pouring taxpayer dollars into a Green New Deal giveaway,” Ernst told DCNF. “The federal government exists to serve the American people, not as a campaign fund for Kamala Harris. Small businesses have been battered under this administration, and the SBA needs to focus on delivering relief, not on winning votes for radical climate mandates in swing states with taxpayer dollars.”
Small Business Optimism dropped to its lowest level in more than 11 years in April, with U.S. business owners concerned about inflation, sales volume and job quality. Small-business owners reported being slightly more hopeful about the economy last month, but a larger share said inflation was their biggest concern, and optimism was below the 50-year average for the 31st straight month under the Biden-Harris administration, According to according to data from the National Federation of Independent Enterprises.
As tiny business owners express concerns about the state of the economy, the SBA announced it will allow an unlimited number of 504 loans for “clean energy projects” in a maneuver that three senators said will reduce “the availability of capital for other small businesses like manufacturers.” 504 loansThe SBA offers tiny businesses up to $5.5 million in fixed-rate loans to purchase assets that support business growth and job creation.
“As America’s small businesses grapple with the high costs of inflation, the SBA’s relentless focus on clean energy initiatives is disconnected from the practical challenges small businesses face and makes exceptions for select, privileged industries,” the Republicans wrote in a letter to Guzman.
The senators also pointed out that by adding modern “green” lenders, the SBA could further jeopardize tiny businesses’ access to funding, as the agency’s Office of Credit Risk Management found in November 2022 that it could only handle three modern lenders. Lawmakers demanded an analysis from the SBA that proves it will be able to adequately supervise its modern climate-focused lenders.
Additionally, three senators requested information regarding recent loans made under SBA programs.
This is not the first time the SBA has been suspected of using taxpayer funds to facilitate Democrats win elections, according to the America First Policy Institute (AFPI) complicated an open records request filed in July related to the agency’s voter registration efforts in Michigan.
“Based on some of the evidence we’ve seen, there’s absolutely reason to be concerned that the Biden administration’s SBA is targeting certain demographic groups in its voter registration efforts,” AFPI Litigation Executive Director Mike Berry told DCNF at the time. “For example, there’s evidence to suggest that the SBA’s strongest presence is in Michigan counties with the highest concentrations of Democratic registered voters, while it’s also least active in Michigan counties with the highest concentrations of small businesses and Republican registered voters per capita.”
In May, Ernst and House Small Business Committee Chairman Roger Williams, a Texas Republican, sent a letter to the SBA demanding travel schedules, calendars and other documents related to voter outreach in swing states. The duo wrote to the SBA again in July demanding the documents but were rebuffed, prompting the House Small Business Committee to issue subpoena.
The SBA did not immediately respond to DCNF’s request for comment.
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Robert Schmad is a reporter for the Daily Caller News Foundation.
