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Small Business Funding

Trump has called for dismantling the Education Department. Here’s what that would mean [Video]

Throughout his campaign, President-elect Donald Trump heaped scorn on the federal Department of Education, describing it as being infiltrated by radicals, zealots and Marxists.He has picked Linda McMahon, a former wrestling executive, to lead the department. But like many conservative politicians before him, Trump has called for dismantling the department altogether a cumbersome task that likely would require action from Congress.The agency’s main role is financial. Annually, it distributes billions in federal money to colleges and schools and manages the federal student loan portfolio. Closing the department would mean redistributing each of those duties to another agency. The Education Department also plays an important regulatory role in services for students, ranging from those with disabilities to low-income and homeless kids.Indeed, federal education money is central to Trump’s plans for colleges and schools. Trump has vowed to cut off federal money for schools and colleges that push “critical race theory, transgender insanity, and other inappropriate racial, sexual or political content” and to reward states and schools that end teacher tenure and enact universal school choice programs.Federal funding makes up a relatively small portion of public school budgets roughly 14%. Colleges and universities are more reliant on it, through research grants along with federal financial aid that helps students pay their tuition.Here is a look at some of the department’s key functions, and how Trump has said he might approach them.Student loans and financial aidThe Education Department manages approximately $1.5 trillion in student loan debt for over 40 million borrowers. It also oversees the Pell Grant, which provides aid to students below a certain income threshold, and administers the Free Application for Federal Student Aid (FAFSA), which universities use to allocate financial aid.The Biden administration has made cancellation of student loans a signature effort of the department’s work. Since Bidens initial attempt to cancel student loans was overturned by the Supreme Court, the administration has forgiven over $175 billion for more than 4.8 million borrowers through a range of changes to programs it administers, such as Public Service Loan Forgiveness.The loan forgiveness efforts have faced Republican pushback, including litigation from several GOP-led states.Trump has criticized Biden’s efforts to cancel debt as illegal and unfair, calling it a total catastrophe that taunted young people. Trump’s plan for student debt is uncertain: He has not put out detailed plans.Civil rights enforcementThrough its Office for Civil Rights, the Education Department conducts investigations and issues guidance on how civil rights laws should be applied, such as for LGBTQ+ students and students of color. The office also oversees a large data collection project that tracks disparities in resources, course access and discipline for students of different racial and socioeconomic groups.Trump has suggested a different interpretation of the office’s civil rights role. In his campaign platform, he said he would pursue civil rights cases to stop schools from discriminating on the basis of race. He has described diversity and equity policies in education as explicit unlawful discrimination and said colleges that use them will pay fines and have their endowments taxed.Trump also has pledged to exclude transgender students from Title IX protections, which affect school policies on students use of pronouns, bathrooms and locker rooms. Originally passed in 1972, Title IX was first used as a womens rights law. This year, Bidens administration said the law forbids discrimination based on gender identity and sexual orientation, but Trump can undo that.College accreditationWhile the Education Department does not directly accredit colleges and universities, it oversees the system by reviewing all federally recognized accrediting agencies. Institutions of higher education must be accredited to gain access to federal money for student financial aid.Accreditation came under scrutiny from conservatives in 2022, when the Southern Association of Colleges and Schools questioned political interference at Florida public colleges and universities. Trump has said he would fire radical left accreditors and take applications for new accreditors that would uphold standards including defending the American tradition and removing Marxist diversity administrators.Although the education secretary has the authority to terminate its relationship with individual accrediting agencies, it is an arduous process that has rarely been pursued. Under President Barack Obama, the department took steps to cancel accreditors for a now-defunct for-profit college chain, but the Trump administration blocked the move. The group, the Accrediting Council for Independent Colleges and Schools, was terminated by the Biden administration in 2022.Money for schoolsMuch of the Education Department’s money for K-12 schools goes through large federal programs, such as Title I for low-income schools and the Individuals with Disabilities Education Act. Those programs support services for students with disabilities, lower class sizes with additional teaching positions, and pay for social workers and other non-teaching roles in schools.During his campaign, Trump called for shifting those functions to the states. He has not offered details on how the agency’s core functions of sending federal money to local districts and schools would be handled.The Heritage Foundation’s Project 2025, a sweeping proposal outlining a far-right vision for the country that overlaps in areas with Trump’s campaign, offers a blueprint. It suggests sending oversight of programs for kids with disabilities and low-income children first to the Department of Health and Human Services, before eventually phasing out the funding and converting it to no-strings-attached grants to states.___Associated Press education writer Collin Binkley contributed to this report.

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Small Business Funding

Trump names Linda McMahon to lead Department of Education [Video]

President-elect Donald Trump has named Linda McMahon to lead the Department of Education, aligning with his campaign promise to dismantle the department and return control to the states.”I’m going to close the Department of Education and move education back to the states,” Trump said.Trump announced his nomination of McMahon, a former small business administrator and wrestling executive, to spearhead this effort.”You could say, well, let’s pass a law that eliminates the Department of Education and all the programs it administers,” said Neal McCluskey of the Cato Institute.”If you don’t eliminate the programs, then you’ve got to put them somewhere,” McCluskey added.Currently, the Department of Education manages the federal student loan portfolio for over 40 million borrowers and provides financial aid.”For example, the federal government administers the Pell Grant and helps lots and lots of kids around the country get to college who couldn’t otherwise afford it,” said Rebecca Winthrop of the Brookings Institution.The department also allocates federal dollars to colleges and K-12 schools.”It’s a lot more about ensuring that every kid, no matter which state they live in, can get access to a high-quality education,” Winthrop added.Trump has vowed to cut funding for schools teaching critical race theory or gender ideology but wants to reward states and schools that implement universal school choice programs.”Instead of money going to just public schools, the money follows kids to whatever school their families choose,” McCluskey said.”I think the mechanism he would use is a scholarship tax credit. There is legislation for that,” McCluskey added.Some experts warn that while expanding school choice may appeal to parents, it could be dangerous and unconstitutional to implement nationwide.Federal funding accounts for less than 15% of public school budgets and much of the budget comes from the state and local levels.

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Small Business Funding

Veterans face challenges starting small businesses but there are plenty of resources to help [Video]

Many veterans whove started small businesses tell a similar story: Their military service prepared them mentally for the task, but they were at a disadvantage when it came to the financial part.Related video above: Veterans with PTSD making progress thanks to service dog programVetrepreneurs veterans that start small businesses or startups — own nearly 2 million small businesses that employ 5.5 million people in the U.S., according to the Small Business Administration. They take in about $1.3 trillion in revenue annually. Their numbers have shrunk, however, as the veteran population has aged. In a 2023 report, the SBA found veteran ownership declined from 11% of businesses in 2014 to 8.1% in 2020.Veterans enter the business world prepared with skills they gain in the field like leadership and problem-solving. But they havent had a chance to build up credit or savings that civilians have had more time to do. That can cause problems because banks use that information to approve loans not to mention the mental toll it takes to transition from the military life to civilian life.According to data from business coaching nonprofit SCORE, about a third of veteran businesses have limited access to capital or lack of financing. That compares to a quarter of non-veteran-owned firms.SCORE CEO Bridget Weston says the good news is that veterans have plenty of places to turn to for help. Those include nonprofit organizations aimed at getting them on their feet and building up financial literacy, veteran-only loans and grants, and contracts earmarked for veteran-owned and disabled veteran-owned small businesses.The place that many start is the Small Business Administration, which offers a program to get certified as a veteran-owned or disabled veteran-owned small business, which can make it easier to get certain loans and federal contracts.Thats the route Jackson Dalton decided to take when he started Black Box Safety, a maker of personal protective equipment, in 2017. Dalton enlisted in the U.S. Marines in 2000 and was selected for the prestigious Marine Corps Special Operations. But a badly broken leg suffered during training eventually forced him to medically retire after two years of active duty.Although the transition back to civilian life was difficult, Dalton went on to get a masters degree in public health and spent 10 years working in the health and safety industry. When he ventured out on his own, he decided to focus on federal contracts and got certified by the SBA. He thought prisons would be a good place to start since 3% of their contracts go to disabled veteran businesses. His first contract was selling gloves to a prison in Minnesota. Today, he serves major clients like the Department of Veterans Affairs and the State of California. Dalton credits his military training with his success.The skills and attributes that I picked up in the military were resilience and grit and the ability to adapt, improvise, overcome when you know when encountering resistance or obstacles and barriers, he said.Veteran-focused nonprofits can be another key place to look for help.Adam Isch, a Marine Corp. veteran who served two tours in Iraq, worked with nonprofit Warrior Rising in Salt Lake City to find a mentor to help him start his business, Isch Body Works in Fort Worth, Texas, which sells mens hygiene products. The business donates part of its revenue to charities supporting Texas children in foster care and awaiting adoption. Similar nonprofits include Bunker Labs, Tactical Launch, and others around the country.Anybody who wants to start a business, especially a veteran, go find a group like a Warrior Rising, there are all kinds of different groups like that getting mentorship, he said. There are people who are doing what you do. Theyre doing what I do, and they love it, and they want to talk about it.” For some, a veteran-earmarked loan can be what makes or breaks a business. Elizabeth Gore, the co-founder and President of Hello Alice, a financial technology firm that works with small businesses on getting funding, including 117,000 military small business owners. They have to really struggle more than other groups and demographics on access to capital, she said.John Griveas in Buffalo, N.Y. spent two years as a Navy Seal in the mid-1990s and his remaining four years in New York in the active reserves, ending his tenure in 2002. After that he bounced around different jobs and spent 10 years in the local collections industry.But in 2014 he met his current partner, Jackie, and decided her hobby of making all-natural dog treats could be a real business. They formed Fetch! Dog Treats as an LLC in 2015 and today they sell their treats at about 300 independently owned mom and pop brick and mortar stores, news shops, banks and even the Venetian Hotel on the Las Vegas strip.For himself and other veterans hes talked to, one of the biggest challenges they face is getting funds. He found a $10,000 grant via the FedEx Entrepreneur Fund, which partners with Hello Alice to give grants to small businesses owned by military veterans. It came at a pivotal time when his landlord decided to redevelop his space and gave him only a few months to find a new location.It was something that quite literally was going to end us, he said. And when that grant came through, it was literally a lifesaver for us.He advised other veterans to take advantage of veteran resources.Theres tons of resources out there, he said. “Whatever it might be that you know, just helps you get through the day-to-day because theres a lot involved with running a business.

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Small Business Funding

Region AHEAD flood recovery grant recipients talk about regrowth [Video]

(WJHL) Region AHEAD gave out $436,000 in flood recovery grants to 28 small businesses in Northeast Tennessee and Southwest Virginia, including Clean Car Garage in Erwin and Customworx in Chuckey. Bob Cantler, President and CEO of The Chamber, which services Johnson City, Jonesborough and all of Washington County is a member of Region AHEAD. []