GOP senators accuse Biden-Harris admin of diverting small business resources to 'Green New Deal documents'

A trio of top Republican senators accused the Biden administration of allegedly funneling resources meant for small businesses into a “climate slush 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 on August 9 sent a letter to Small Business Administration (SBA) Director Isabel Guzman, accusing her agency of undermining Community Advantage, a program meant to provide loans to small businesses, by signing up new lenders that will focus on “support[ing] small business efforts to reduce climate change.” The group of lawmakers also expressed suspicion about the SBA's recent collaboration with the Environmental Protection Agency's Greenhouse Impacts Reduction Fund, noting than the SBA Announcement of July 22 that would coordinate with the multibillion-dollar green energy grant program came just after Vice President Kamala Harris became the presumptive Democratic presidential nominee.

“Once again, Vice President Kamala Harris is funneling tax dollars into Green New Deal handouts,” Ernst told the DCNF. “The federal government exists to serve the American people, not as a fundraiser for Kamala Harris' campaign. Small businesses have been subjected to excess by this administration, and the SBA must focus on providing relief, not getting out the vote for radical climate mandates in swing states on the taxpayer's dime.”

Optimism for small businesses fell down to a more than 11-year low in April, with US employers worried about inflation, sales volume and labor quality. Small business owners reported being slightly more optimistic about the economy last month, but a larger percentage said inflation was their top concern, and optimism was below the 50-year average years for the 31st consecutive month under the Biden-Harris administration. seconds in the data of the National Federation of Independent Companies.

As small business owners express anxiety about the state of the economy, the SBA has announced that it will allow an unlimited number of 504 loans for “clean energy projects” in a move that the three senators, will reduce “the availability of capital for other small businesses.” companies such as manufacturers.” Through 504 loansthe SBA offers small businesses fixed-rate loans of up to $5.5 million to purchase assets that promote business growth and job creation.

“As America's small businesses struggle with the high cost of inflation, the SBA's relentless focus on clean energy initiatives is out of touch with the practical challenges facing small businesses and is only an election for select favored industries,” the letter sent by Republicans to Guzman reads.

The senators also noted that by adding new “green” lenders, the SBA could further jeopardize small businesses' access to funds such as the agency's Office of Credit Risk Management. found in November 2022 that it could only manage three new lenders. Lawmakers demanded an analysis from the SBA that shows it will be able to sufficiently oversee its new climate-focused lenders.

In addition, the three senators requested information on the latest loans issued through SBA programs.

This is not the first time the SBA has come under suspicion of using taxpayer resources to help Democrats win elections, as the America First Policy Institute (AFPI) presented a records request in July about the agency's voter registration efforts in Michigan.

“Based on some of the evidence we've seen, there is absolutely cause for concern that the Biden administration's SBA is targeting certain demographics as part of its partisan voter registration effort,” said Executive Director of AFPI litigation, Mike Berry, at the DCNF at the time. . “For example, there is evidence to suggest that the SBA's greatest presence is in Michigan counties with the highest concentrations of registered Democratic voters, while at the same time it is less active in Michigan counties with the highest concentrations higher small business and registered Republican 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 its voter outreach efforts to states of change. The duo wrote to the SBA again in July to request documents, but were rebuffed, prompting the House Small Business Committee to issue a citation.

The SBA did not immediately respond to DCNF's request for comment.

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