Obama to Elevate Small Business Administration Head into Cabinet

American President Barack Obama announced a new move to promote the head of Small Business Administration into the Cabinet and sought Congress’s help to make it a reality. The move is aimed to free the government of existing bureaucratic burdens and make it’s functioning more efficient.

The announcement is part of a grander scheme to combine SBA with five other Government agencies, which overlap each other in functioning. The merger of these organizations will see a formation of a single entity, thus aiding smoother functioning. The Commerce Department would be one of the six agencies that will be merged. At the current juncture, the President does not need consensus from Congress to elevate the SBA chief, however his proposed merger of trade and business agencies will need the nod from Congress. Such a move will see a major change to the existing federal structure of the country and reduce existing red tape. Wholesale changes to the federal structure have failed to happen since Reagan’s regime.

The gesture is believed to help in the process of economic recovery, by bringing the small businesses into confidence. Small Business owners at first sight have welcomed such a move, but reading the fine print will provide clarity to one and all. The move is also set to make lending for SBA-backed projects easier and increase their accessibility to credit.

“This is the same sort of authority that every business owner has to make sure that his or her company keeps pace with the times,” Obama said. “Let me be clear, I will only use this authority for reforms that result in more efficiency, better service and leaner government.”

The Government has candidly admitted that the merger could see at least 2000 to 3000 people lose jobs in the process; however the plan could save almost $3 Billion over a period of ten years.

The members of the Republican Party have been cautious in their reaction to the development. In spite of the election season, they insist that the move has to be reviewed carefully before a decision or a stand is made. The President has no plans of going slow, he has already announced the formation of a new website BusinessUSA.gov, which will put together information of all business owners seeking Government support making it a single largest source of information for all business and exporters.

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