Small Business Administration – On Monday of this week SBA Administrator Linda McMahon wrote a blog post at SBA.gov celebrating the agency’s 65th year supporting small businesses. July 30, 1953, SBA’s birthday, is when President Dwight D. Eisenhower signed the Small Business Act that established the agency. It’s also worth mentioning that the agency recently updated it’s image with a new logo. (see below)
When folks think of the Small Business Administration they often only think of the lending aspect of the agency. It is true that the SBA 7(a) and 504 Program have had a profound impact. However, the SBA does much more than simply link entrepreneurs to bank funding sources. They have also helped counsel and mentor business owners while connecting them to government contract opportunities and disaster relief loans.
The Small Business Administration now boasts a network of SBA District Offices, lending partners, and resource partners like Small Business Development Centers, Women’s Business Centers, and SCORE chapters. The agency’s budget is more than $710 million annually with over 3,300 employees.
The agency provides grants to support counseling partners, including approximately +900 Small Business Development Centers (often located at colleges and universities), +110 Women’s Business Centers, and SCORE chapters, a +10,000 volunteer mentor corps of retired and experienced business leaders with approximately 350 chapters. These counseling services provide services to over 1 million entrepreneurs and small business owners annually.
SBA helps lead the federal government’s efforts to deliver 23 percent of prime federal contracts to small businesses. Small business contracting programs include efforts to ensure that certain federal contracts reach woman-owned and service-disabled veteran-owned small businesses as well as businesses participating in programs such as 8(a) and HUBZone.
The 8(a) Business Development Program assists in the development of small businesses owned by women and minorities. The program is aimed at helping individuals who are considered socially and economically disadvantaged. The 8(a) SBA Program has helped businesses become certified and gain access to federal contracts.
The HUBZone program is helping small companies that are operating and employing people in Historically Underutilized Business Zones. Historically, HUBZone businesses receive certifications that encourage State Governments to purchase goods and services from HUBs.
Generally, SBA loans are made through banks, credit unions and CDC’s partnered with the agency’s 504 and 7(a) programs. In 2017, 7(a) loan volume reached more than $25.44 Billion and 504 loans totals increased to $5 Billion for a total of $30 Billion to small businesses. (+68,000 loan approvals) Also, during the 2017 period, the SBA approved 27,263 disaster recovery loans for a total of $1.7 Billion in direct funding. This included 24,121 home disaster loans and 3,142 business disaster loans.
According to Administrator Linda McMahon, we can expect the agency to focus on four goals:
As we can see by Linda McMahon’s statements, the Small Business Administration’s new logo is more than a face lift. The program is growing and expanding in a direction that is friendlier to both business owners and lenders.
We join in celebrating not only the 65th birthday of the SBA we at North Texas Loan Advisors are also celebrating the agency’s future success! If you wish to learn more about how to take advantage of the SBA’s lending programs and services please contact us so we can help!
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