What is the SBA (Small Business Administration)?
What is the SBA?
No loan might be more sought-after than what SBA, Small Business Administration, offers. As the government partially guarantees these loans, SBA loans offer long-term loans to small business owners in need of liquidity. Borrowers can use them for a variety of reasons. Are you curious about who is the Small Business Administration?
Who is the SBA?
The history of the U.S. Small Business Administration dates back in 1953. It was formed as an independent agency of the federal government. The purpose of this agency is to aid, counsel, assist, and protect the interests of small business concerns. It’s also created to preserve free competitive enterprise. There have been various efforts to maintain and strengthen the overall economy of the country, and SBA is also made to push through this common goal.
SBA recognizes the value of small businesses to the economic recovery of any country. In building America’s future, SBA made its efforts to grow and evolve in the years since it was established. Through a vast network of field offices in various regions of the country, SBA is successful in helping small business owners throughout the United States, the U. S. Virgin Islands, Puerto Rico, and Guam.
What is the SBA intended to do?
When you’re trying to obtain a loan at the Small Business Administration, you aren’t only dealing with the agency itself. You are also dealing with participating lenders. The best thing about this dynamic is that borrowers can have better chances of securing a long-term loan.
What the SBA does in this scheme is that it guarantees to partner lenders. This type of relationship helps mitigate the loss of the lenders. It opens doors to borrowers who might not be able to qualify to a loan from banks and other types of lenders in the normal loan market.
Now, this process sounds better than your usual lending applications. Know that you still need to know what the requirements for an SBA Loan are. Every application is sorted out on a case to case basis. If you’re even thinking about which SBA loan is right for you, you can check out our page dedicated to that concern.
What are the specific functions of SBA?
Since it started in 1953, the U.S. Small Business Administration has helped people in ways more intricate than bridging the gap between small business owners and lenders. Below are the programmatic functions of SBA:
Access to Capital (Business Financing)
SBA provides small businesses with various financing opportunities. From the smallest needs in microlending to more complex debt and equity investment capital (venture capital), the agency can cover these functions.
Entrepreneurial Development (Education, Information, Technical Assistance & Training)
SBA also offers free individual internet or face-to-face counseling for small businesses. They can also avail low-cost training to nascent entrepreneurs and established small businesses. There are over 1,800 locations throughout the country and US territories where interested parties can enjoy training sessions.
Government Contracting (Federal Procurement)
The Small Business Administration abides with the mandate of Section 15(g) of the Small Business Act. The agency’s Office of Government Contracting sets goals with other federal departments and agencies. They work hand in hand to reach the statutory goal of 23% in prime contract dollars to small businesses. The said office also provides small businesses with outreach programs, subcontracting procurement opportunities, and training.
Advocacy (Voice for Small Business)
This Office was created in 1978. It reviews Congressional legislation. This office also testifies on behalf of small business. Assessing the impact of the regulatory burden on behalf of small businesses is also one of its tasks.
It is more than just an agency that guarantees loans. Its impact transcends to the financial aspect of any small business. By backing up loans, borrowers can avail various loan sizes with longer repayment terms and reasonable interest rates.