The White House's Fiscal Year 2027 budget request proposes significant cuts to the Small Business Administration, outlining a plan that could reduce the agency's funding by two-thirds.

Entrepreneurs and small business owners could face a more challenging environment for growth and funding, as a budget reduction of this magnitude would directly impact the availability of SBA mentorship programs, loan guarantees, and the agency's operational capacity. This signals a potential seismic shift in the federal support landscape provided by the SBA, which is a cornerstone for access to capital, counseling, and government contracting opportunities.

What We Know So Far

  • The FY 2027 budget request proposes cutting SBA funding to $329 million. This represents a 67% decrease from the $1 billion allocated in 2026, according to a report from Forbes.
  • The proposal includes deep cuts to federal programs within the SBA's Office of Entrepreneurial Development, as reported by PRNewswire.
  • Specific programs reportedly targeted for elimination include the Service Corps of Retired Executives (SCORE). This is part of a proposed $309 million reduction to entrepreneurial development initiatives.
  • The budget also proposes a $204 million cut to the Community Development Financial Institutions (CDFI) Fund, an entirely separate Treasury Department program that also supports local economic and small business growth.