The Small Business Administration and Your Business

What would you do if the SBA was no more?

The Wall Street journal article headline read: “Should the Small Business Administration Be Abolished?” The internet buzz is swirling with conjecture. There is, of course, no concrete evidence to this and organizations such as WIPP (Women Impacting Public Policy) are against the Small Business Administration (SBA) closing. This action would devastate many local programs supported by this government agency in many areas of the country.

When an arm of the government which supports, in some way or other, millions of entrepreneurs comes under fire we must pay close attention. Without the assistance of the various support services that the SBA offers, many startups and seasoned entrepreneurs would not be in business today. These businesses employ millions of individuals nationwide, not to mention the thousands who start their own businesses each year.

Through the Small Business Administration, there are over 100 Women’s Business Centers scattered across this nation. This figure does not include the many Small Business Technical and Development Centers nationwide and many other organizations that are supported peripherally by the SBA in support of small businesses on the local level.

Role of the SBA

It is important to note that this government agency is the voice for small businesses at the federal level. It defines, applies, and serves as the cushion for this segment of the market force from defining business size and minority classification to guaranteeing loans for small businesses and much, much more. The SBA is widely recognized through its lending support programs. Some of these programs have been around many decades. These programs include the 7(a), CDC/504, Export, Military, Microloan and Disaster Programs, to mention a few.

It is a common mistake to assume that the SBA is a lender. This is not the case. The Small Business Administration is NOT a lender. What the SBA does though is “guarantee the loan”. They guarantee loan repayments to approved lenders in case borrowers default. The popularity of the program illustrates how banks are reluctant to risk their capital without the support of the government.

On the flip side is this – many startups are having a difficult time accessing information and resources to start and/or grow their businesses. Too often I hear clients say they “wish they had known of place like this”. There are many that still do not fully understand the purpose of the SBA or know how to access a SBA supported business development center.

The marketing arm of the SBA needs to step up the game in blitzing the businesses and showcasing their products and services. How great would it be if more entrepreneurs had a better understanding of the purpose and reason for the Small Business Administration?

Get Involved

Business owners, please weigh in on this topic today! Call your congressperson, write letters, emails, and voice your conce
s via social media sites such as Twitter and Facebook. The powers that be need to hear from you.