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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]])=====About===The SBA licenses, regulatesSmall Business Innovation Research ([[SBIR]]), and helps provide funds for privately owned and operated venture capital investment firms through the Small Business Investment Company Development Centers (SBIC[[SBDC]]). The SBIC specializea in providing long-term debt and equity investments to high-risk small businesses ==Contact== Answer desk: answerdesk@sba. Its creation was the result of a Federal Reserve study that discovered, in the simplest terms, that small businesses could not get the credit they needed to keep pace with technological advancement. [httpsgov Houston office://www.houston@sba.gov/about Office of Chief Information Officer: (202-205-sba/what6708) Office of Performance Management and the Chief Financial Officer: (202-we205-do/history| ]6449)==SBIR====Major Loan Programs=====7(a) 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.brw.com.au/p/business/why_we_should_clone_america_small_Y2ehdTvAi81O87SOECPr9H| ] *7(a) loan applications are made to 4 million clients with online and funded by SBA accredited partners. When a business applies for an SBA loanin-person training, it is actually applying for a commercial loanmentoring, structured according to SBA requirements. The lender is largely protected by the SBA guaranteeand advising in FY 2016.*A small business pays between 7.5%-9.5% interest on their loan. This interest is split betweenPrograms offered: banksSmall Business Development Centers, Women's Business Centers, SCORE, Learning Center, Boots to Business, which can charge no more than 2.75% on top of the prime rate (currently 3.25%)Regional Innovation Clusters, Entrepreneurship Education, and a SBA guarantee fee ranging between 2%-3.75%. [httpEmerging Leaders*Strategies://www.brw.com.au/p/business/why_we_should_clone_america_small_Y2ehdTvAi81O87SOECPr9H| ]*In 2015 the #Harness SBA approved 63,461 7(a) loans for a sum 's nationwide network of $23.58b at an average of $371k. The total of all loans guaranteed was $111.769b with a bad debt rate (called charged off) of less than 1 per cent. [http://www.brw.com.au/p/business/why_we_should_clone_america_small_Y2ehdTvAi81O87SOECPr9H| ]resource partners*7(a) program is targeted towards larger companies with 2#Improve entrepreneurial ecosystems through cross-agency and public-3 years of experience. This loan is not geared towards startups or "smaller" large businesses, as evidenced by the average loan size of $317,000. [http://www.brw.com.au/p/business/why_we_should_clone_america_small_Y2ehdTvAi81O87SOECPr9H| ]private partnerships#Offer tailored training through structured programs and online access ===8(a) Business Development Program=Budget==*Target towards certified socially and economically disadvantaged companies SBA's total budget request for FY 2016 (socially disadvantaged meaning racially and/or ethnically disadvantagedincluding Stafford Act Disaster funding)is $860 million.*Minority businessesOf this amount, which must leave the program after nine years$3.*Entrepreneurs who participate in the 8(a) Program are eligible 3 million is for the 7(a) Guaranty Loan and the Pre-Qualification Programs.*Participants can receive sole-source contractsbusiness loan subsidy, up to $4 19.9 million for goods and services the Office of the Inspector General and $69.5 1 million for manufacturingthe Office of Advocacy. To qualify as economically disadvantaged, a borrower must have a net worth This total is inclusive of less than $250,000, assets under $4 28 million, as well as two years’ worth of tax returnsfor administering non-Stafford Act disasters. [http://www.entrepreneur.com/article/244989| ]*The firm must be at least 51 percent owned by the disadvantaged program applicant and owners must show good character. ===Equal Opportunity Loan (EOL)===*EOL Program relaxed the credit and collateral requirements for applicants living below the poverty level*Encourage new commercial initiatives previously unable to attract financial backing to apply for this loan. [https://www.sba.gov/about-sbasites/default/files/files/what1-we-do/historyFY_2016_CBJ_FY_2014_APR_508.pdf| SBA FY16 Budget Highlights]===504 Loan Program===Some 2016 budget reforms include:*Intended to supply funds for asset purchases (i.e.Launch SBA One, land or equipment)*Like the 7(a) program, the 504 program is restricted designed to small businesses with less than increase loan efficiency process*Allocates $7 3 million in tangible net worth and less than $2.5 million in net income. However, since funds from 504 loans can't be used for working capital or inventory, consolidating or repaying debt, or refinancing, this program tends to exclude most service businesses that need to purchase land or equipment. [http://www.entrepreneur.com/article/79254| ]===7(m) Microloan Program===*Intended to provide towards "smallidea lab" loans of up to $35,000 that can be used for a broad range of purposes to start and grow a business.which will help adopt private sector best practices *Start-up friendly. All new businesses are eligible to apply. Although the maximum loan amount is $35For further detail,000, the average loan is approximately $10,000. see [[http://www.entrepreneur.com/article/79254| SBA Budget Graphs]*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.entrepreneur.com/article/79254| ]*Must concurrently enroll in technical assistance classes administered by the micro-lender intermediaries to be eligible for loan.===Other===*Export Working Capital Program provides short-term working capital to small, export businesses.*DELTA program provides both financial and technical assistance to help businesses dependent on defense installations transition to civilian markets.

The five most prevalent criticisms of the SBA include [http://www.cato.org/publications/congressional-testimony/waste-fraud-abuse-small-business-administration-programs| ]:

*The Government Accountability Office (GAO) criticized SBA's ability to provide timely disaster assistance to Gulf Coast hurricane victims through their disaster loan system. For more information about this criticism, go to [http://www.gao.gov/new.items/d06860.pdf| GAO's report] on the SBA's disaster relief loans.*GAO also released Report 10-108 which found that failing to hold firms accountable sent a message to the contracting community that there is no punishment or consequences for committing fraud. See [http://www.gao.gov/new.items/d10108.pdf| the report] for more information.*The SBA has difficulty in [[SBA Lender and Loan Oversight]].