
Small Business Funding at Risk Under Trump, Threatening Jobs
3/14/2025 | 2mVideo has Closed Captions
A federal funding freeze threatens small business loans, grants, and disaster aid.
A Trump-ordered federal funding freeze has put billions of dollars in small business loans and grants on hold, causing uncertainty for California entrepreneurs. A legal battle is underway, but business owners fear lasting economic damage.
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SoCal Matters is a local public television program presented by PBS SoCal

Small Business Funding at Risk Under Trump, Threatening Jobs
3/14/2025 | 2mVideo has Closed Captions
A Trump-ordered federal funding freeze has put billions of dollars in small business loans and grants on hold, causing uncertainty for California entrepreneurs. A legal battle is underway, but business owners fear lasting economic damage.
Problems playing video? | Closed Captioning Feedback
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Learn Moreabout PBS online sponsorshipThis is Liz Perez, the owner of GC Green, a general contracting and consulting firm in San Diego County that focuses on clean energy.
Perez and others worry that a Trump-ordered funding freeze could mean fewer opportunities for entrepreneurs to start and grow businesses, which could lead to fewer jobs and less investment.
Trump imposed a federal funding freeze, January 27, halting billions of dollars for thousands of federal programs, including many aimed at small businesses.
After California and other states filed suit, a federal judge issued a temporary restraining order, putting the freeze on hold.
Since then, more legal wrangling has ensued, including a court order stating that Trump failed to comply with the initial ruling.
California, the nation's most populous state, is the biggest recipient of Small Business Administration loans, with $1.15 billion in loans approved for this year.
Not all loans from the agency are federally funded, but they are guaranteed by the government.
The loans funded by the agency, which could be most at risk from the freeze, include disaster loans and microloans.
With these government freezes happening and with the programs at the SBA basically coming to a complete halt and the freezes that you see going on with the grants, there's so much uncertainty, and it leaves small businesses in a precarious situation.
The Small Business Administration and the White House did not return multiple requests for comment.
California Attorney General Rob Bonta, who with other state attorneys general won a temporary restraining order against the freeze, said that if enacted, it would affect 34% of the state's budget, which he called a massive, irreplaceable chunk.
For CalMatters, I'm Levi Sumagaysay.
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SoCal Matters is a local public television program presented by PBS SoCal