The United States Small Business Administration, also known as the SBA, is an independent agency of the United States government. Small businesses in the United States employ almost half of the private workforce and account for over 40% of the country’s gross domestic product. The SBA maintains and strengthens the nation’s economy by establishing small businesses and assisting in the economic recovery of communities after disasters. Formed under the Small Business Act, signed by President Eisenhower in 1953, the SBA offers different loan, entrepreneurial development, federal contracting and business development programs to over 30 million small businesses in the United States.

Of the SBA’s various loan programs, the most common is the 7(a) Loan Guarantee Program. This loan program is designed to help entrepreneurs start or expand their small businesses. The benefits of the 7(a) Loan Guarantee Program include greater approval potential, longer maturity on term loans, and a streamlined application process. Furthermore, the fees can be financed into the loan, and small business owners can borrow anywhere from $500 to $5.5 million, as outlined in The Small Business Jobs Act of 2010. The 504 Loan Program provides long-term, fixed-rate financing for businesses seeking to acquire major assets, such as real estate or equipment. Businesses affected by disasters are eligible for long-term, low-interest Disaster Relief Loans to recover, rebuild, or repair to a pre-disaster condition. These loans are often approved within 3 weeks. The Microloan Program provides microloans of up to $50,000, marketing, management, and technical assistance to small businesses.

The SBA also funds Small Business Development Centers (SBDCs) and Women’s Business Centers (WBCs) along with state support. There are approximately 900 SBDCs and over 100 WBCs located throughout the nation, typically located at community colleges and state universities. Another resource partner of the SBA, the Service Corps of Retired Executives (SCORE), is the nation’s largest network of volunteer, expert business mentors that has educated over 10 million small business owners. SCORE has over 300 chapters nationwide and offers both online and in-person educational workshops. These programs provide free or low-cost counseling, training, mentorship, business development, and financing opportunities. SBA’s Office of Veteran Business Development operates 22 Veteran Business Outreach Centers (VBOCs) which provide assistance to businesses owned by veterans and hosts the Boots to Business program.

Additionally, the SBA has the 8(a) Business Development Program, designed to assist small businesses owned by socially and economically disadvantaged individuals. SBA policy presumes Asian Pacific Americans and persons with origins from Taiwan as socially disadvantaged; these groups do not have to submit a statement of personal experiences and evidence to demonstrate social disadvantage when applying for the program. The program lasts for 9 years, with the first 4 years focusing on business development and participating in government contracts, and the remaining 5 years on transitioning out of the program and competing independently for contracts. 8(a) firms are awarded 5% of the government’s $99 billion in small business contracts.