In a letter obtained exclusively by the Daily Caller News Foundation, three leading Republican senators accused the Biden administration of diverting funds intended for small businesses into a “climate slush fund.”
Sens. Joni Ernst of Iowa, James Risch of Idaho, and Marco Rubio of Florida sent a letter to Small Business Administration (SBA) Administrator Isabel Guzman on August 9, accusing her of undermining the Community Advantage program, designed to provide loans to small businesses, by allowing new lenders to sign up that focus on “helping.”[ing] The lawmakers also expressed doubts about the SBA’s recent collaboration with the Environmental Protection Agency’s Greenhouse Gas Reduction Fund, Announcement on July 22 The announcement to work with the multibillion-dollar green energy subsidy program came shortly after Vice President Kamala Harris was nominated as the Democratic presidential nominee.
“Once again, Vice President Kamala Harris is funneling taxpayer dollars into Green New Deal handouts,” Ernst told DCNF. “The federal government exists to serve the American people, not as a slush fund for Kamala Harris' campaign. Small businesses have been hard-pressed under this Administration, and the Small Business Administration should be focused on providing relief, not on getting swing states to vote for radical climate action with taxpayer money.” (Related: Conservative organization investigates 'partisan' voter registration drive in key battleground states for Biden administration)
Small business optimism fell to its lowest level in more than 11 years in April, with American business owners concerned about inflation, sales and labor quality. Small business owners reported being somewhat optimistic about the economy last month, but the share saying inflation is their biggest problem increased, and optimism has remained below the 50-year average for 31 consecutive months under the Biden-Harris administration. According to According to data from the National Federation of Independent Business.
As small business owners express concern about the state of the economy, the SBA announced it would grant unlimited 504 loans for “clean energy projects.” The three senators say the move will “reduce the supply of capital to other small businesses, such as manufacturing.” 504 loansThe SBA offers small businesses fixed-rate loans of up to $5.5 million to purchase assets that will help their business grow and create jobs.
“At a time when small American businesses are struggling with high inflationary costs, the SBA's relentless focus on clean energy programs is out of touch with the real challenges facing small businesses and represents little more than a special treatment for a favored industry,” the Republicans wrote to Guzman.
The senators also noted that the SBA could further jeopardize small business access to capital by adding new “green” lenders. The SBA's Office of Credit Risk Management said: Found In November 2022, the SBA announced it would only be able to handle three new lenders. Lawmakers demanded an analysis to prove the SBA could adequately oversee new climate-focused lenders.
Additionally, the three senators requested information about loans recently issued through SBA programs.
This is not the first time the SBA has been accused of using taxpayer funds to help Democrats win elections; the America First Institute filed a records request in July regarding the agency's voter registration activities in Michigan.
“Based on some of the evidence we've seen, it's certainly concerning that the Biden Administration's SBA is targeting certain demographics as part of a partisan voter registration effort,” AFPI Executive Director of Litigation Mike Berry told DCNF at the time. “For example, the SBA's largest activities are in Michigan counties with the highest concentrations of registered Democratic voters, while at the same time, there is evidence to suggest that the SBA's activities are the least in Michigan counties with the highest concentrations of small businesses and registered Republican voters per capita.”
In May, Ernst and Republican Roger Williams of Texas, who chairs the House Small Business Committee, wrote to the SBA requesting travel schedules, itineraries and other documents related to voter outreach efforts in battleground states. They also wrote to the SBA in July requesting documents, but were denied, leading the House Small Business Committee to issue subpoenas.
The SBA did not immediately respond to DCNF's request for comment.
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