Even with a 45% cut in its 2012 fiscal year budget proposal, the SBA said it will still be able to support small businesses.

The SBA's budget request is $985 million, which is a 45% decrease from 2010 enacted funding, that included $962 million in supplemental appropriations, the agency said. Excluding supplemental funding, the 2012 request is $161 million higher primarily due to increased estimated subsidy costs while its administrative costs dropped $19 million compared to fiscal year 2011.

It expects to save $20 million through more efficient loan management and accounting systems. There is also a proposed $10 million cut in the reduction of support to small business development centers and an $8 million decrease through the elimination of a duplicative technical assistance program. The SBA said it will also save $8 million due to reduction of 850 core staff of disaster employees and $1 million by eliminating a duplicative drug-free workplace program.