As part of his budget proposal for fiscal year 2025-26, Gov. Ron DeSantis plans to eliminate funding for the Black Business Loan Program.
His budget, called “Focus on Fiscal Responsibility,” calls for the cancellation of $2.225 million for the program, which provides loans for “Black business enterprises that cannot obtain capital through conventional lending institutions but that could otherwise compete successfully in the private sector,” according to Florida State Statute.
The program, last decade, had a record of controversy, including allegations of high rates of default, inadequate security for loans, and loans made improperly to ineligible people, including elected politicians and a convicted felon, according to reporting in the Florida Times Union of Jacksonville, the Gainesville Sun and FloridaPolitics.com.
The budget cut falls under community development programs within Housing and Community Development. Overall, the department stands to be funded at $438 million under the Governor’s budget proposal, a little less than half its funding in the current budget year.
The policy area also includes a $100 million cut to the Broadband Equity, Access, and Development Grant Program, which helps ensure access to broadband in underserved areas. It’s worth noting though that the same program was zeroed out in the current fiscal year, meaning the Governor’s proposal maintains a cut already implemented.
The Governor’s budget also includes a $100 million cut to the Low Income Home Energy Assistance Program (LIHEAP), which provides financial assistance to low-income residents having trouble paying their electric bills.
The proposals are part of DeSantis’ latest budget, released quietly late Sunday. The $115.6 billion proposal is more than $3 billion less than the current fiscal year budget.
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