What is Small Business Administration?

Small Business Administration, also known as SBA, is a government agency that is tasked to provide assistance to small businesses and entrepreneurs in order to encourage the practice of small business ownership in the United States. First formed in 1953 and based in Washington, D.C., the mandate of the SBA is “to maintain and strengthen the nation’s economy by enabling the establishment and viability of small businesses and by assisting in the economic recovery of communities after disasters. The thrust of the SBA is popularly summarized as capital, contracts, and counseling or the 3 C’s of SBA engagement.

The SBA achieves its objectives via a number of ways and is an active participant in small business management as opposed to just standing on the sidelines ala canlı maç izle. Amongst the ways the SBA enhances its engagement are:

  • SBA loans administered via SBA partner agencies like credit unions, banks and lenders. Loaning via the SBA contains a government-backed guarantee which enhances the credit facility and minimizes the cost of lending on the part of small businesses. The system is governed by the Recovery Act and Small Business Jobs Act which were designed to give up to 90% guarantee to motivate small businesses to avail of loans to improve their businesses and strengthen the entrepreneurial spirit.
  • SBA also facilitates the awarding of as much as 23% of federal contracts to small businesses. Without the SBA, small businesses do not stand a chance in competing against big-time businesses that gobble up majority of federal contracts. The SBA ensures federal contracts are encouraged to seek out woman-owned and service-disabled veteran-owned small businesses that can empower business owners.
  • The SBA also provides grants in its thrust to provide counseling services where necessary. According to the latest data, the SBA maintains a least one office in every state and is consequently partnering with other organizations to extend its support in talking to businesses to provide knowledge and encouragement. As many as 900 Small Development Business Centers have been put up across the United States, another 100 Women’s Business Centers, and over 350 chapters of SCORE which is a volunteer mentor corps focused on providing expert knowledge from retired business leaders to small business owners.

With the SBA in full action, small businesses that sell a variety of brands from home-made products for natural hair to gardening or school and office supplies gain a representation in the federal government. This empowerment seeks to boost the role of the small business owner in nation building, specifically in creating a strong middle class with sustainable income and having the ability to create jobs and help the community.

The latest news in the continuing growth of the Small Business Administration came in January 2012 when President Obama announced that he is eyeing the elevation of the SBA into a cabinet position. If pushed through, this will give small business owners a direct access to the President’s Office and an even greater mandate in revving economic growth and national development.

The US Small Business Administration is a success story for entrepreneurship that merits serious consideration as a working model for other countries. If one is to truly value small businesses and entrepreneurship, there has to be a government agency that looks into the welfare of these ventures and the SBA is more than a great step in that direction.