NEW YORK—The automatic cuts, or sequester, that was triggered Friday, will result in a $5.5 million blow to the Small Business Administration (SBA) nationwide.
The SBA, a key small business resource, directly supports 20 percent of the job creation in the country, according to a new report from Rep. Nydia Velazquez (D-N.Y.), released on Monday.
Small businesses make up two-thirds of the tax base in New York City and they employ 50 percent of the workers, according to Councilwoman Diana Reyna, chair of the Committee on Small Businesses.
“The sequester will be devastating to our economy,” Velazquez said outside City Hall in Manhattan.
An estimated 700,000 jobs will be lost nationwide from the sequester, according to the report (pdf).
“These are not numbers,” Velazquez said. “This is about people.”
