President Barack Obama has elevated the position of Small Business Administration administrator — a post now held by Mainer Karen Mills — to a Cabinet-level position.

The move comes as part of a broad proposal by the administration to consolidate the business and trade operations in six federal areas: the Commerce Department’s core business and trade functions; the SBA; the Office of the U.S. Trade Representative; the Export-Import Bank; the Overseas Private Investment Corporation; and the Trade and Development Agency. The goal would be one agency designed to help businesses thrive.

Obama has asked Congress for the authority to reorganize the operations — authority past presidents have had. In the meantime, he has elevated the SBA position to a Cabinet post, said Jeff Zients, Office of Management and Budget director for management, in a Friday call with the media.

“So while we wait for Congress to act and pass consolidation authority, given the importance of small business to the economy, the president has elevated the Small Business Administration to Cabinet. Karen Mills — who is the current administrator — will join the president’s Cabinet,” said Zients, according to a transcript of the call. “And she will obviously be on the Cabinet with John Bryson, the secretary of Commerce, and the U.S. Trade Representative Ron Kirk.”

Sen. Olympia Snowe, who has pushed for moving the SBA administrator position back into the Cabinet since before Obama took over as president, praised the expected move in a Friday release.

“I was an early and ardent advocate for the administration to elevate the SBA administrator position to the Cabinet level since before President Obama took office because, given the central job-creation role small businesses play in our nation’s economy, it is absolutely essential the head of the SBA have a seat at the Cabinet table with the president,” said Snowe. “I’ve urged this change numerous times in personal conversations with the president, and as I wrote in a December 2008 letter to President-elect Obama, ‘this designation will send a clear signal that small business will drive our nation out of this recession.’”

Congressman Mike Michaud, D-Maine, agreed in a Friday statement.

“The voices of our small businesses need to be heard at the highest levels,” Michaud said. “This move is an important step in the right direction and will hopefully improve the attention our government pays to the needs of small businesses.”

Snowe, who is the ranking Republican on the Senate’s Committee on Small Business and Entrepreneurship, said she believed Mills is “the one person in the administration who knows how to save and create jobs, based on her extensive private-sector experience and background.”

“I called her this morning to congratulate her following news reports of this action, and I could not be more pleased by this decision, as Maine and the nation will be well represented by Karen’s leadership,” Snowe said. “I am proud that Karen will now bring her pragmatic, reasoned voice to a seat at the Cabinet table, and wish her well in this critical endeavor.”

Sen. Susan Collins, R-Maine, noted Friday that she was a former New England administrator for the SBA, and knew the value the SBA programs held for small businesses.

“Just this morning, I visited a growing small business, Maine Coast Co. in York, which had taken advantage of one of SBA’s loan guarantee programs to purchase new equipment and to expand its plant. SBA warrants Cabinet-level recognition to demonstrate the critical importance of small businesses to our economy, and having Maine’s Karen Mills at the table is a plus,” Collins said.

She added, however, that what would help small businesses even more was for the administration to not continue to “impose costly new regulations and propose higher taxes on our entrepreneurs. Such actions create burdens and uncertainty that discourage small businesses from creating jobs.”

Other Cabinet members include the vice president and the heads of 15 executive departments — the secretaries of Agriculture, Commerce, Defense, Education, Energy, Health and Human Services, Homeland Security, Housing and Urban Development, Interior, Labor, State, Transportation, Treasury, and Veterans Affairs, as well as the Attorney General.

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41 Comments

    1. Let’s hope that will be the outcome. Another 4 years of Obama and we’ll be answering to China…..you can take that to the bank!!!!

      1. President Obama would’ve achieved so much more if the GOP wasn’t hell bent on destroying his administration.

        1. Typical liberal comment. Before you comment…..I’m Independant…….don’t vote party lines…..vote for the person I feel will do for the better of the USA.

          1. The GOP has gone on record as saying their priority was to make Obama a one term president. They didn’t say their priority was to get the economy running again, they didn’t say it was to find out why the banks were bailed out to the tune of billions. the first week of his administration, both the Senate leaders and Rush said their goal was to make him a one term president.

            From where I sit, the Republicans have done everything possible to achieve that goal and nothing to fix the economy.

            After Obama presented the 2011 budget, all the GOP did was run it down and rail against it. After 4 months, they presented their own version. So obviously all they wanted to do was obstruct. There are too many examples of this behavior to list. But, I know, as an Independent, you listen to the GOP and nod until your neck hurts, but still want to claim to be Independent. If you were, you would do a little more reading and a little less nodding.

          1. I guess it all depends on who is in office with you democrats.  If you have the power, you blame the republicans and if you are in the minority, you blame the republicans.  Could it be that you do not know how to lead and you have no ideas of your own??

          2. No ideas of their own? If you look back, you will see that the GOP has been the party of Just Say No.

            While the Dems had various proposals to fix the health care system, the GOP had none, they just said no to everything. Remember the claim that we have the best system in the world, blah, blah, blah? Turns out we spend about 50% more and have a lower life expectancy than many other countries.

            Can you name one job creation initiative the GOP has made that doesn’t begin and end with lowering taxes on the rich and ending environmental regulations? Can you remember that this was the G. Bush plan and it got us to the biggest economic downturn since the last time a Republican led us into depression?

            So if this country is on the wrong track, yes it is the Republicans. They have put forward nothing for the common man and everything for the wealthy. The economic gap between the haves and the have nots continues to grow, the result of a tax system that rewards those who churn money and make nothing over thos who go to work every day. And if you don’t believe me, check out how much taxes you pay if you are a broker who sells stock and then figure out how much in taxes you pay if you make the same amount changing tires in a garage.

            The whole Republican agenda is simple. Lower the taxes more on the very wealthy, give them lots of loopholes for the taxes they should pay. Finance war through borrowing and let the middle class pay the bill. Finally, blame the state of the economy on the poor and accuse the Dems of class warfare.

            Oh, did I forget, one plank of their platform calls for sending goons out to disrupt gatherings of Democratic Congressmen, yelling and shoving, and then whine that the political discourse is not civil.

        2. Like for the two years when the Dems controlled both houses of Congress and the Executive mansion? Riiiiight.

        1. That was their plan. Slowly distroy the American workers wage scale while lining  their own pockets and we keep voting for them.

    2. Obama; you voted for him to prove Americans were no linger racist, now vote against him to prove we aren’t stupid.

    3. He should be voted out as he is nothing more than an incompetent, funnier version of Warren G. Harding with a slew of his own scandals such as Solyndra, Fast and Furious, the stimulus, and on and on…

  1. The SBA should be the centerpiece of the presidents re-election bid.  If what we need are jobs, there is no more efficient mechanism for job creation than through small businesses.  Small businesses are centers for innovation, they provide more training and they provide the majority of jobs.  In addition, small businesses spend money in the community.  For every dollar spent at a national retailer, twenty cents goes back into the community.  For every dollar spent at a small business, more than forty cents are spent in the community.  This is the most effective leverage point for our economy, especially here in Maine.

    Improving capital accessibility through small businesses is what the SBA has done for more than 50 years.  Instead of government bureaucrats deciding who gets a loan and who doesn’t, this is left to local bankers who understand risks, understand the community and can best evaluate who would be most likely to repay the loan and meet the goals in their business plan.  SBA works.

    A big feature of our sluggish economy is that the large banks are sitting on their cash.  Preferring increased liquidity to making and servicing loans.  The SBA helps mitigate the risks to make small businesses “bankable” with loan guarantees.  In addition, the SBA funds the Small Business Development Centers that help startups and existing businesses develop in local communities.

    If any of the candidates truly ran on a small business platform, I believe they would have tapped into the best possible strategy.  The statistics tell us that small businesses are where jobs are mostly created.  Our real life experience shows us that small business owners, our neighbors, are integral parts of our communities that offer better service and better jobs.  Everybody can relate to many local entrepreneurs who start small and build a lasting viable business.  Of course, large corporations are the funders of campaigns.  Small businesses are competition.  This is why the divide exists.  Still, I feel that if politicians would truly embrace creating favorable conditions for small business success and access to capital, we would improve the employment statistics, our communities and the marketplace for consumers as well.  Choice is what drives fair and equitable capitalism.  Limited competition favors poor service and inequality. 

    I wish Karen Mills well in her position.  I hope she is able to draw enough of the presidents time and attention to pay more attention to small business. It would benefit Maine immensely.  I strongly believe that the best future for our struggling economy is achieved by promoting the often forgotten economy that we see every day.

  2. “So while we wait for Congress to act and pass consolidation authority, given the importance of small business to the economy, the president has elevated the Small Business Administration to Cabinet…”

    Mr. Zients does not speak the truth here.

    As noted in the article below:

    “There is a distinction to be made, however, between the president inviting the head of an agency to his Cabinet, as Obama will do with SBA Administrator Karen Mills, and elevating the entire agency to ‘Cabinet-level status,’ according to Paul Light, Paulette Goddard Professor of Public Service at New York University. 

    Light described Cabinet-level status as ‘a formal designation that only Congress can make by giving the individual and the agency a particular level in the executive pay structure.’  He explained that Mills’ future attendance at Cabinet meetings is purely symbolic and will in no way affect her pay grade unless Congress passes additional legislation.

    He’s basically saying, ‘I’m going to call this person a BFF…and I’m going to invite this person to our clubhouse for our quarterly Cabinet meetings,’ Light said, comparing the process to the ceremonial act of knighthood….”

    Add to this the fact that there were half a dozen Cabinet heads with whom Obama had no private meetings during his first two years in office.  It remains to be seen just how much influence Mills will have on administration policy.

    This appears to be a cynical political move to create the impression during an election year that Obama is  intensely focused on easing the way for small businesses to create jobs and is more than likely pure Kabuki Theater.

    http://www.govexec.com/story_page.cfm?articleid=49775&oref=todaysnews

  3. “So while we wait for Congress to act and pass consolidation authority, given the importance of small business to the economy, the president has elevated the Small Business Administration to Cabinet…”

    Mr. Zients does not speak the truth here.

    As noted in the article below:

    “There is a distinction to be made, however, between the president inviting the head of an agency to his Cabinet, as Obama will do with SBA Administrator Karen Mills, and elevating the entire agency to ‘Cabinet-level status,’ according to Paul Light, Paulette Goddard Professor of Public Service at New York University. 

    Light described Cabinet-level status as ‘a formal designation that only Congress can make by giving the individual and the agency a particular level in the executive pay structure.’  He explained that Mills’ future attendance at Cabinet meetings is purely symbolic and will in no way affect her pay grade unless Congress passes additional legislation.

    He’s basically saying, ‘I’m going to call this person a BFF…and I’m going to invite this person to our clubhouse for our quarterly Cabinet meetings,’ Light said, comparing the process to the ceremonial act of knighthood….”

    Add to this the fact that there were half a dozen Cabinet heads with whom Obama had no private meetings during his first two years in office.  It remains to be seen just how much influence Mills will have on administration policy.

    This appears to be a cynical political move to create the impression during an election year that Obama is  intensely focused on easing the way for small businesses to create jobs and is more than likely pure Kabuki Theater.

    http://www.govexec.com/story_page.cfm?articleid=49775&oref=todaysnews

    1. Ever notice you NEVER hear about Obama’s former girlfriends prior to his marriage to Moochelle? Maybe there weren’t any…

  4. “So while we wait for Congress to act and pass consolidation authority, given the importance of small business to the economy, the president has elevated the Small Business Administration to Cabinet…”

    Mr. Zients does not speak the truth here.

    As noted in the article below:

    “There is a distinction to be made, however, between the president inviting the head of an agency to his Cabinet, as Obama will do with SBA Administrator Karen Mills, and elevating the entire agency to ‘Cabinet-level status,’ according to Paul Light, Paulette Goddard Professor of Public Service at New York University. 

    Light described Cabinet-level status as ‘a formal designation that only Congress can make by giving the individual and the agency a particular level in the executive pay structure.’  He explained that Mills’ future attendance at Cabinet meetings is purely symbolic and will in no way affect her pay grade unless Congress passes additional legislation.

    He’s basically saying, ‘I’m going to call this person a BFF…and I’m going to invite this person to our clubhouse for our quarterly Cabinet meetings,’ Light said, comparing the process to the ceremonial act of knighthood….”

    Add to this the fact that there were half a dozen Cabinet heads with whom Obama had no private meetings during his first two years in office.  It remains to be seen just how much influence Mills will have on administration policy.

    This appears to be a cynical political move to create the impression during an election year that Obama is  intensely focused on easing the way for small businesses to create jobs and is more than likely pure Kabuki Theater.

    http://www.govexec.com/story_page.cfm?articleid=49775&oref=todaysnews

  5. Karen Mills, I would love to have a conversation with you about how poorly your organization is run.

  6. I wonder if Big Paulie will contact her and congratulate her on the promotion. Oh wait that would never happen the Democrats might take it as a sign of  weakness. I think People before politics is a great motto if you mean it. So go ahead Paulie and reach out to her, Maine’s people need jobs and anything else we can get from D.C.

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