Obama: Budget Cuts Could Force Small Businesses to Close Doors

February 11, 2013 - 2:00 PM

obama

President Barack Obama. (AP)

(CNSNews.com) – President Barack Obama said clean energy and privately owned small businesses would suffer if the automatic cuts in federal spending in the sequester take effect, starting on March 1, potentially blocking some small businesses from the resources they need to stay open.

The sequestration cuts were orchestrated by Obama and House Speaker John Boehner (R-Ohio) in late July 2011 as part of a deal to raise the debt ceiling and will lead to an estimated $1.2 trillion in spending reductions over 10 years.

“If the sequester is allowed to go forward, thousands of Americans who work in fields like national security, education or clean energy are likely to be laid off,” Obama said during his weekly address on Saturday.

The president talked about public sector workers, such as firefighters and food inspectors, who could potentially lose their jobs if the across the board $1.2 trillion in cuts occurred. But without fully explaining, he said privately funded small businesses would be affected.

“Small businesses could be prevented from getting the resources and support they need to keep their doors open,” Obama said. “People with disabilities who are waiting for their benefits, could be forced to wait even longer.”