Small Business Administration (SBA)

The Small Business Administration (SBA) is a federal agency whose mission is to strengthen the nation's economy by enabling the establishment and viability of small businesses and to assist communities in economic recovery after disasters. The SBA has three main strategic goals: (1) to improve the economic environment for small businesses, (2) to help small businesses to succeed, and (3) to restore homes and businesses affected by disasters. The SBA assists prospective entrepreneurs, new start-up businesses, and existing small businesses through a variety of programs and with partner organizations. The SBA was established in 1953 by the Small Business Act.

The SBA created size standards by industry type that define the maximum size that a firm, including all affiliates, may be for eligibility as a small business entity for SBA programs. The two most widely used size standards are 500 employees for most manufacturing and mining industries and $6 million in average annual receipts for most nonmanufacturing industries. There are, however, many exceptions to the size standards, and the SBA's Small Business Size Regulations should be consulted.

The SBA's programs fall into the following four categories:

• 1.
  Small business lending: The SBA provides loans to new and existing businesses that would not otherwise qualify for loans without the government's guarantee. The SBA's current business loan portfolio of approximately 219,000 loans worth more than $45 billion makes it the largest single financial backer of U.S. businesses in the country.
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• 2.
  Federal procurement: The federal government strives to award at least 23% of its purchases to small businesses. The SBA assists small businesses by helping them get access to the federal procurement system. The SBA also helps government agencies use small business sources.
• 3.
  Technical assistance: The SBA and its partner organizations provide technical assistance programs to more than 4 million existing and potential small business entrepreneurs annually. The SBA assists new businesses by helping them navigate their way through compliance with laws and other issues in starting and running a business. Some of the SBA's partner organizations to which it provides grants include more than 1,100 small business development centers (SBDCs), 389 SCORE chapters (Service Corps of Retired Executives), and 84 women's business centers. SCORE is a network of more than 10,000 retired and working volunteers who are experienced entrepreneurs and corporate managers/executives. These volunteers provide free business counseling and advice. The SBDC offer counseling, training, and technical assistance in all aspects of small business management. The SBDC's services are delivered through a network of multiple centers and satellite locations. The SBA works to promote and assist women business owners through the Office of Women's Business Ownership. There are women's business centers located in each state and territory.
• 4.
  Disaster lending: The SBA provides low-interest loans to individuals and businesses that are victims of natural disasters. SBA's disaster loans help homeowners, renters, businesses, and nonprofit organizations finance rebuilding and recovery efforts. Since 1953, SBA programs have provided direct or indirect assistance to 20 million small businesses.