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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 and funded by SBA accredited partners. When a business applies for an SBA loanBusiness, Regional Innovation Clusters, it is actually applying for a commercial loanEntrepreneurship Education, structured according to SBA requirements. The lender is largely protected by the SBA guarantee.Emerging Leaders*A small business pays between 7.5%-9.5% interest on their loan. This interest is split betweenStrategies: banks, which can charge no more than 2.75% on top #Harness SBA's nationwide network of the prime rate resource partners#Improve entrepreneurial ecosystems through cross-agency and public-private partnerships#Offer tailored training through structured programs and online access ==Budget== SBA's total budget request for FY 2016 (currently 3including Stafford Act Disaster funding) is $860 million.25%)Of this amount, and a SBA guarantee fee ranging between 2%-$3.75%. [http://www.brw.com.au/p/3 million is for business/why_we_should_clone_america_small_Y2ehdTvAi81O87SOECPr9H| ]*In 2015 the SBA approved 63loan subsidy,461 7(a) loans $19.9 million for a sum the Office of the Inspector General and $239.58b at an average 1 million for the Office of $371kAdvocacy. The This total is inclusive of all loans guaranteed was $111.769b with a bad debt rate (called charged off) of less than 1 per cent28 million for administering non-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:*7(Launch SBA One, a) program is targeted towards larger companies with 2-designed to increase loan efficiency process*Allocates $3 years of experience. This loan is not geared million towards startups or "smalleridea lab" large businesseswhich will help adopt private sector best practices For further detail, as evidenced by see [[SBA Budget Graphs]]. ==Criticisms==The most prevalent criticisms of the average loan size of $317,000. 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;===8(a) Loan Program===#Duplicating activities already provided in private markets;*Target towards certified socially #Harms businesses and economically disadvantaged consumers;#Government intervention in deciding market trends can often bet on the wrong companies (socially disadvantaged meaning racially and/or ethnically disadvantaged)at taxpayer expense;#SBA fosters corruption.*Minority businessesSpecifically, which must leave the program after nine years.*Entrepreneurs who participate in the 8(a) Program are eligible for the 7(a) Guaranty Loan and the Pre-Qualification Programs.*Participants can receive soleGAO released Report 10-source contracts, up 108 which found that failing to hold firms accountable sent a message to $4 million the contracting community that there is no punishment or consequences for goods and services and $6.5 million for manufacturing. To qualify as economically disadvantaged, a borrower must have a net worth of less than $250,000, assets under $4 million, as well as two years’ worth of tax returnscommitting fraud. See [http://www.entrepreneurgao.comgov/articlenew.items/244989d10108.pdf| the report]for more information.*The firm must be at least 51 percent owned by the disadvantaged program applicant SBA has difficulty in [[SBA Lender and owners must show good character. ===504 Loan Program===*Intended to supply funds for asset purchases (iOversight]].e., 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 Program====SBIC===*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 loan.specific courses of further action regarding SBA]]===OtherArticles===*Export Working Capital Program provides short-term working capital to small, export businesses.*DELTA program provides both financial [[SBA and technical assistance to help businesses dependent on defense installations transition to civilian markets.Data Reporting]]