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<onlyinclude>Created in 1953 as an independent agency of the federal government, the Small Business Administration's (SBA) number one has two strategic goal is goals: first, growing businesses and creating jobs, and its second goal is , to serve as the voice for small [[:Small Business]]. SBA claims that the core of their entrepreneurial development is the foundation of targeted, effective advising, training, and mentoring services to drive business. Their entrepreneurial development performance goal focuses on driving greater participation in the resource partner advising and mentoring programs and training courses. The major tools employed by the [[:SBA are ]] primarily offers a range of financial assistance programs for small businesses that may have trouble qualifying for a traditional bank loan. The SBA guarantees $65 million in loans to small businesses through its two major loan programs, 7(a) and 504. Follow this link for a list of the major [[SBA Loans]]. SBA's programs also include financial and federal contract procurement assistance, management assistance, and specialized outreach to women, minorities and armed forces veterans. SBA also provides loans to victims of natural disasters and specialized advice and assistance in international trade. [https://www.sba.gov/about-sba/what-we-do/history| ]</onlyinclude>

Agencies affiliated with the SBA include: Small Business Investment Company ([[SBIC]]), Small Business Innovation Research ([[SBIR]]), and Small Business Development Centers ([[SBDC]]). ==Major Loan ProgramsContact=====7Answer desk: answerdesk@sba.gov Houston office: houston@sba.gov Office of Chief Information Officer: (202-205-6708) Office of Performance Management and the Chief Financial Officer: (a202-205-6449) Loan Program ==FY 2016 Entrepreneurship Goals==*The biggest program is the 7(Broad goal: Strengthen entrepreneurial ecosystems through a) Loan Guarantee, which guarantees as much as 85% variety of loans up strategic partnerships to $150provide tailored training, mentoring,000 and 75% advising services that support entrepreneurs during every phase of loans of more than $150,000their business growth. The maximum loan SBA guarantees is 5 million. [http*Performance goal://wwwreach 1.brw4 million clients with online and in-person training, mentoring, and advising in FY 2016.com.au/p/business/why_we_should_clone_america_small_Y2ehdTvAi81O87SOECPr9H| ] *7(a) loan applications are made Programs offered: Small Business Development Centers, Women's Business Centers, SCORE, Learning Center, Boots to Business, Regional Innovation Clusters, Entrepreneurship Education, Emerging Leaders*Strategies:#Harness SBA's nationwide network of resource partners#Improve entrepreneurial ecosystems through cross-agency and funded by public-private partnerships#Offer tailored training through structured programs and online access ==Budget== SBA accredited partners's total budget request for FY 2016 (including Stafford Act Disaster funding) is $860 million. When a business applies for an SBA loanOf this amount, it $3.3 million is actually applying for a commercial business loansubsidy, structured according to SBA requirements$19. The lender is largely protected by 9 million for the Office of the SBA guarantee.*A small business pays between 7.5%-Inspector General and $9.5% interest on their loan1 million for the Office of Advocacy. This interest total is split between: banks, which can charge no more than 2.75% on top inclusive of the prime rate (currently 3.25%), and a SBA guarantee fee ranging between 2%$28 million for administering non-3.75%Stafford Act disasters. [httphttps://www.brwsba.com.augov/sites/default/pfiles/businessfiles/why_we_should_clone_america_small_Y2ehdTvAi81O87SOECPr9H1-FY_2016_CBJ_FY_2014_APR_508.pdf| SBA FY16 Budget Highlights] Some 2016 budget reforms include:*In 2015 the Launch SBA approved 63One,461 7(a) loans for a sum of program designed to increase loan efficiency process*Allocates $23.58b at an average of $371k3 million towards "idea lab" which will help adopt private sector best practices For further detail, see [[SBA Budget Graphs]].  ==Criticisms==The total most prevalent criticisms of all loans guaranteed was $111.769b with a bad debt rate (called charged off) of less than 1 per cent. the SBA include [http://www.brwcato.com.auorg/publications/pcongressional-testimony/waste-fraud-abuse-small-business/why_we_should_clone_america_small_Y2ehdTvAi81O87SOECPr9H-administration-programs| ]: #Creates uneven playing field by aiding some businesses while denying aid to others, thus distorting markets;#Duplicating activities already provided in private markets;#Harms businesses and consumers;#Government intervention in deciding market trends can often bet on the wrong companies at taxpayer expense;#SBA fosters corruption. Specifically,  *7(GAO released Report 10-108 which found that failing to hold firms accountable sent a) program message to the contracting community that there is targeted towards larger companies with 2-3 years of experience. This loan is not geared towards startups no punishment or "smaller" large businesses, as evidenced by the average loan size of $317,000consequences for committing fraud. See [http://www.brwgao.comgov/new.auitems/p/business/why_we_should_clone_america_small_Y2ehdTvAi81O87SOECPr9Hd10108.pdf| the report]for more information.===504 *The SBA has difficulty in [[SBA Lender and Loan Program===*Intended to supply funds for asset purchases (i.eOversight]]., land or equipment)*Like The CATO Institute argues that the 7(very conception of the SBA was a) programbad idea, questioning the 504 program is restricted to small businesses with less than $7 million federal government's strategy in tangible net worth and less than $2.5 million intervening in net incomethe credit market. However, since funds from 504 loans can't They say that the United States grew to be used for working capital or inventory, consolidating or repaying debt, or refinancing, this program tends to exclude most service businesses an economic powerhouse with a small centralized federal government that need largely left business development to purchase land or equipmentthe private sector. For more information about the CATO institute's criticism, see this [http://www.entrepreneurcato.comorg/publications/articlecongressional-testimony/79254waste-fraud-abuse-small-business-administration-programs| article]. ==Literature=====7(m) Microloan ProgramSBIC===*Intended [http://www.gao.gov/products/GAO-16-107 GAO report on SBIC]**GAO recommended that SBA provide guidance to provide "small" loans of up SBIC on how to $35collect and report data on their investments in minority, women,000 that can be used for a broad range of purposes to start and grow a businessveteran owned businesses.*Start-up friendly. All new businesses are eligible to apply. Although the maximum loan amount is $35,000, the average loan is approximately $10,000. [http://www.entrepreneurjdsupra.com/articlelegalnews/description-of-the-small-business-23940/79254| Description of the SBIC Debenture Program]===SBIR===*Unlike the 7(a) program, the funds to be loaned don't come from banks; rather, they come directly from the SBA and are administered to business owners via nonprofit community-based intermediaries. [http://www.entrepreneurgao.comgov/assets/article670/79254| 669651.pdf GAO report finds SBIR data reporting inadequate]*Must concurrently enroll in technical assistance classes administered by the micro==McNair Center Internal==[[McNair Center-lender intermediaries to be eligible for loanspecific courses of further action regarding SBA]]===Articles===[[SBA and Data Reporting]]