Unit VII Project – PUA

 This assignment is the second of a three-step process. Step 3 will be completed in Unit VIII.Using the selected government budget from Part I in the previous unit, evaluate the past 3 years’ allocation of private and public goods. Develop an analysis that addresses the prompts listed below.

• Evaluate goals and priorities of the local government goods and services.
• Assess internal and external challenges for providing goods and services.
• Evaluate budget stabilization measures.
• Provide recommendations.

Your report should consist of no less than two pages, and all sources utilized should be cited and referenced using APA Style. Please ensure that you include a title page and reference page. Remember that the title page and reference page are not included in the page expectation. 

Unit VI Project – Government Funding

1

Unit VI Project – Government Funding

Unit VI Project – Government Funding

The government of the United States is involved in different types of programs for society’s well-being. One government funding program to help small businesses is the United States small business administration. If a person has a small business that is engaged in scientific development and research, then a person can qualify for a government grant under small business technology transfer and small business innovation research. The program has not filed for bankruptcy yet, and it’s been helping many new businesses establish their position in the industry (Marks, 2022).

After COVID-19, the government has been proposing new schemes and grants for small businesses 7nder the American Rescue Plan Act. In 2022, the government announced that it would distribute more than $10 billion to each state. In 2020, the government spent around $76 billion. While in 2021, the government spent approximately $41 billion. This shows that government spending on small businesses has increased over the last three years (Milano, 2013). The analysis shows that federal agencies get funding for small business from Congress called budgetary resources. Agencies are required to spend these budgetary resources bases on the promise, also known as an obligation. In 2022, the government had $21.24 billion in award obligations for small businesses, the number of transactions that happened was around 1.25 million, and the niner of new awards was estimated to be 352,676.

The analysis shows that COVID-19 greatly impacted small and medium enterprises. To help small businesses, the government support programs played a critical role in managing the crisis. There are multiple programs to help support small companies, such as the Pay Protection Program, with 5.2 million loans for small businesses. The SBA economic injury disaster loan program added around 3.6 million for small business loans valued at more than 91 billion dollars (SBA, 2022).

Small businesses play a significant role in the economy of the countries, or it can be said that it act as the backbone of the community. So, by funding small business activities, the government of the United States has also benefited through business activities in the SME sector. The entire idea was to help small businesses by giving them an investment in hand, which would not have been possible through traditional lenders. The impact on the government funding for small companies is also beneficial for the government because of local tax income, employment tax, and property tax. More businesses in the United States economy boost the government’s tax income (Marks, 2022). So, it can be said that the government of the United States recognizes the importance of small businesses and helping them after COVID-19 lockdowns to ethically source taxes from them.

The biggest challenge to helping small businesses after COVID-19 is the war in Ukraine because the projection of the program has been hugely impacted. The economic effect of the conflict between Ukraine and Russia is unclear. Still, it is predicted that it can reduce the growth projection by one percent while the government may also face issues funding more businesses. Because of these challenges, the liquidity of SMEs has increased in the United States due to a “revenue shortfall.” On the other hand, the biggest opportunity is to implement the loan easily. Companies can go to the official website of the SBA to apply for funding. SBA loans can also be obtained from banks (Milano, 2013). The biggest advantage of the opportunity of these types of loans is that they mitigate the risk of money from traditional al lending sources.

In conclusion, it can be said that the government is involved in different budgetary and funding facilities for various fields. The assignment is based on the funding for small businesses and how it benefits the SMEs and the government through taxes and employment. The SMEs are highly important for employment activities in the market so funding small businesses can be highly beneficial, and the program is also not bankrupt.

References

Marks, G. (2022, June 5).
The federal government is offering $10bn to small businesses – here’s how to apply. The Guardian. https://www.theguardian.com/business/2022/jun/05/small-business-funds-minority-owned-credit-initiative

Milano, S. (2013).
Role of Government in Promoting Small Business. Chron.com. https://smallbusiness.chron.com/role-government-promoting-small-business-60657.html

SBA. (2022).
USAspending.gov. Www.usaspending.gov. https://www.usaspending.gov/agency/small-business-administration?fy=2022