What is the Small Business Administration? The SBA is a government organization that provides loans, contracts, grants, counseling, and other forms of assistance to small businesses.
History of the SBA
Founded in 1953, the U.S. Small Business Administration is the by-product of former programs—the Reconstruction Finance Corporation (RFC) and the Smaller War Plants Corporation (SWPC). The RFC was established to help businesses hurt by the Great Depression get back on their feet and start contributing to the economy. Unable to compete with larger industries, the SWPC was then created to help small businesses participate in war production. However, this was soon discontinued after the war, and the powers were handed back to the RFC.
Over time, small business assistance was passed back and forth between the RFC, The Office of Small Business, and other wartime programs similar to the SDPA. Eventually, President Dwight Eisenhower proposed the creation of the SBA. The Small Business Administration would take certain characteristics from each program that came before it in order to create a government function that offers aid, counsel, and protection for small businesses.
The SBA Today
Today, the SBA continues to grow and provide an array of programs to encourage small business ventures. They operate under four different programs:
* Access to Capital – finance the needs of a small business
* Entrepreneurial Development – provide free individual counseling and affordable training for emerging and established small businesses.
* Government Contracting – provides procurement opportunities, outreach programs, training, and works with other federal departments to ensure that 23% of prime contract dollars are awarded to small businesses.
* Advocacy – testify on behalf of small businesses, keep a close eye on the impact of regulatory difficulties, and conduct research to gain a better understanding of the small business environment.
Whether you’re the owner of a small air duct repair shop or work as a general contractor, take a look at the National Resource Guide provided by the Small Business Administration. This catalog can help you start or expand your business, as it provides information on training, capital, contracting, and advocacy.
We hope you now have some clarity on the programs the SBA offers. If you still have unanswered questions regarding this unique government organization, feel free to contact their answer desk by phone or email.
