The Small Business Administration (SBA)
In July of 1953 the United States Congress amended an act called the Small Business Act. Many believed that the essence of the American economic system of private enterprise is free competition. Also, that only through full and free competition can free markets, free entry into business, and opportunities for expression and growth of personal initiative and individual judgment can be assured. Thus, the Small Business Act was amended. In order to carry out the policies of this Act there was hereby created an agency under the name "Small Business Administration". The United States Small Business Administration, more commonly known as the SBA, is a federal agency to protect and assist America's greatest resource, the small business. Since American enterprise is the backbone of our economy and the driving force behind economic growth and prosperity.
?The mission of the Small Business Administration (SBA) is to maintain and strengthen the Nation's economy by aiding, counseling, assisting, and protecting the interests of small businesses and by helping businesses and families recover from disasters.?
The SBA's mission is to create economic development through small businesses. To put it in simple terms, the SBA helps businesses get started and helps established businesses grow.
The SBA has many functions; here we discuss the six of the functions that small businesses should look at. The first function of the SBA is Business Development, based on management assistance through information, counseling, training and conferences, utilizing the following programs: · Services Corps of Retired Executives (SCORE) · Small Business Institutes (SBI) · Small Business Development Centers (SBDC) · Business Information Centers (BIC). The next function, Financial Assistance offers a variety of financing options to eligible small business concerns that cannot borrow on reasonable terms from conventional lenders without government help. Financial Assistance is made up of three different loan categories: · 7(a) General Business Loan, which is most widely used. It provides funds for almost any legitimate business purpose. · Certified Development Company Loans (504 Program) provide long term, fixed rate financing at reasonable rates for businesses to grow. · Other Special Loan Programs include: Micro loans; Lines of Credit; Contract Loans; Physical Disaster Loans; Direst loans to veterans, Vietnam, disabled and handicapped individuals, etc. Another function of the SBA is Investment Capital. This provides small businesses to have money or capital for growth and finance. The Small Business Investment Capital or SBIC provides the capital. Developed in 1958, the SBIC wanted to fill the gap between venture capitol and the needs of small businesses. There are two types of SBIC's, the regular SBIC and the specialized SBIC. The Procurement Assistance function tries to make sure that small businesses get their fair pay, goods...