For years, politicians have called small businesses the “backbone of our economy.” They show up for ribbon cuttings, pose for photos, and use us as props in their speeches. But when it comes to protecting the programs that keep us alive, they’re nowhere to be found. The proposed cuts to the Small Business Administration (SBA) and the gutting of the HHS Office of Small and Disadvantaged Business Utilization (OSDBU) prove just how hollow their words are.
OSDBU, once a vital advocate for small businesses in federal contracting, is now down to a single staff member. Meanwhile, a 43% reduction in SBA staff means fewer resources for loans, disaster recovery, and contracting support. These programs aren’t just acronyms—they’re lifelines. Without them, Michigan’s small businesses will face uphill battles while economic development organizations chase flashy billion-dollar battery plants and potash mines. The fallout? Shuttered storefronts, lost jobs, and communities left picking up the pieces—all because the real drivers of local economies are being ignored.
It’s time for small businesses to get political, pay attention, and fight like hell.
What’s at Stake for Michigan
In Michigan, small businesses make up 99.6% of all businesses and employ nearly half of the state’s workforce—1.9 million people. We’re not just numbers; we’re the ones reinvesting in our neighborhoods, sponsoring local events, donating to charities, and keeping money circulating locally. These cuts limit competition, reward the rich, and threaten to gut the resources we rely on to survive and thrive.
The SBA provides critical support through loan guarantees, disaster recovery assistance, and advocacy for small businesses in federal contracting. These aren’t luxuries—they’re lifelines. SBA loans help business owners expand operations, hire employees, and recover from crises like last year’s drought. Without these programs, many small businesses will cease to exist.
The elimination of OSDBU is equally devastating. This office was instrumental in securing billions of dollars in federal contracts for small businesses, ensuring minority-owned and disadvantaged businesses had a fair shot at competing in a system dominated by corporate giants. These contracts fund essential services like cybersecurity solutions for government agencies, healthcare equipment for hospitals, disaster recovery materials, and infrastructure projects that benefit communities nationwide.
The Fallout
Federal cuts to small business programs don’t just hurt entrepreneurs—they destabilize entire communities. Small businesses are the heartbeat of Michigan’s towns and cities, reinvesting locally, creating jobs, and fostering connections that make neighborhoods thrive. When these businesses lose access to critical resources like SBA loans or federal contracts, the ripple effects are devastating: jobs vanish, storefronts shutter, and communities lose their lifeblood.
The elimination of OSDBU is particularly damaging because it strips away a vital system designed to level the playing field for disadvantaged entrepreneurs. Without it, minority-owned and women-led businesses face even greater barriers in competing against corporate giants who already dominate the system.
There are a few leaders in our state stepping up. Congresswoman Scholten fights for small business innovation and workforce development on the House Small Business Committee, while Senator Elissa Slotkin champions bipartisan solutions prioritizing entrepreneurs over corporate handouts.
Michigan can’t afford to let these cuts go unchallenged. If lawmakers don’t step up to protect these programs, the fallout will be felt far beyond business owners—it will erode the very fabric of our communities.
A Call to Action
Stop hiding behind “we don’t do politics” and start paying attention. These cuts are an existential threat—not just to your business but to your employees, customers, and community.
Get to work:
- Support Your Allies: Back politicians like Congresswoman Scholten and Senator Slotkin actively fighting for small businesses. Call their offices, thank them for their work, donate to their campaigns, and ask how you can help amplify their efforts.
- Contact Other Representatives: Demand answers from those who aren’t stepping up. Hold them accountable for their silence while programs supporting small businesses are gutted.
- Share Your Story: Use social media, local media outlets—any platform you can—to explain how these programs have helped you and what their loss would mean.
- Rally Your Community: Encourage other business owners to join you in pushing back against these disastrous policies.
Small businesses are the heart of this country. We’re not flashy, we’re not chasing headlines, and we’re certainly not asking for handouts. What we want is fairness—a system that doesn’t stack the deck against us while rewarding those at the top.
America doesn’t need more billionaires. It needs us. We make America great.
Kim Bode is the owner of 8THIRTYFOUR Integrated Communications as well as a Board member for Women Impacting Public Policy, Small Business Association of Michigan, and Women in Defense Michigan.
