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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>

==Major Loan Programs=====7(a) Loan Program===*The biggest program is Agencies affiliated with the 7SBA include: Small Business Investment Company (a) Loan Guarantee, which guarantees as much as 85% of loans up to $150,000 and 75% of loans of more than $150,000. The maximum loan SBA guarantees is 5 million. [http://www.brw.com.au/p/business/why_we_should_clone_america_small_Y2ehdTvAi81O87SOECPr9H| [SBIC]] *7(a) loan applications are made to and funded by SBA accredited partners. When a business applies for an SBA loan, it is actually applying for a commercial loan, structured according to SBA requirements. The lender is largely protected by the SBA guarantee.*A small business pays between 7.5%-9.5% interest on their loan. This interest is split between: banks, which can charge no more than 2.75% on top of the prime rate Small Business Innovation Research (currently 3.25%[[SBIR]]), and a SBA guarantee fee ranging between 2%-3.75%. Small Business Development Centers ([http://www.brw.com.au/p/business/why_we_should_clone_america_small_Y2ehdTvAi81O87SOECPr9H| ]*In 2015 the SBA approved 63,461 7(a) loans for a sum 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| SBDC]*7(a) program is targeted towards larger companies with 2-3 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| ]===8(a) Loan Program===*Target towards certified socially and economically disadvantaged companies. Socially disadvantaged categories include race and ethnicity.*Starter program for minority businesses, 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. Businesses must be owned by a socially and economically disadvantaged individual.  *Participants can receive sole-source contracts, up to $4 million 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 returns.*The firm must be at least 51 percent owned by the program applicant and owners must show good character.

==Contact== Answer 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: (202-205-6449) =504 Loan Program=FY 2016 Entrepreneurship Goals==*Intended Broad goal: Strengthen entrepreneurial ecosystems through a variety of strategic partnerships to supply funds for asset purchases (iprovide tailored training, mentoring, and advising services that support entrepreneurs during every phase of their business growth.*Performance goal: reach 1.e4 million clients with online and in-person training, mentoring, and advising in FY 2016.*Programs offered: Small Business Development Centers, Women's Business Centers, SCORE, Learning Center, Boots to Business, land or equipment)Regional Innovation Clusters, Entrepreneurship Education, Emerging Leaders*Like the 7Strategies:#Harness SBA's nationwide network of 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 (aincluding Stafford Act Disaster funding) programis $860 million. Of this amount, the 504 program $3.3 million is restricted to small businesses with less than for business loan subsidy, $7 19.9 million in tangible net worth for the Office of the Inspector General and less than $29.5 1 million in net incomefor the Office of Advocacy. However, since funds from 504 loans can't be used This total is inclusive of $28 million 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 equipmentadministering non-Stafford Act disasters. [httphttps://www.entrepreneursba.comgov/sites/default/files/articlefiles/792541-FY_2016_CBJ_FY_2014_APR_508.pdf| SBA FY16 Budget Highlights] Some 2016 budget reforms include:*Launch SBA One, a program designed to increase loan efficiency process*Allocates $3 million towards "idea lab" which will help adopt private sector best practices For further detail, see [[SBA Budget Graphs]]. ===7(m) Microloan Program=Criticisms==*Intended to provide "The most prevalent criticisms of the SBA include [http://www.cato.org/publications/congressional-testimony/waste-fraud-abuse-small" loans of up -business-administration-programs| ]: #Creates uneven playing field by aiding some businesses while denying aid to $35others,000 that thus distorting markets;#Duplicating activities already provided in private markets;#Harms businesses and consumers;#Government intervention in deciding market trends can be used for a broad range of purposes to start and grow a businessoften bet on the wrong companies at taxpayer expense;#SBA fosters corruption. Specifically,  *StartGAO released Report 10-up friendly. All new businesses are eligible 108 which found that failing to hold firms accountable sent a message to apply. Although the maximum loan amount contracting community that there is $35,000, the average loan is approximately $10,000no punishment or consequences for committing fraud. See [http://www.entrepreneurgao.comgov/articlenew.items/79254d10108.pdf| the report]for more information.*Unlike The SBA has difficulty in [[SBA Lender and Loan Oversight]].*The CATO Institute argues that the very conception of the 7(SBA was a) programbad idea, questioning the funds federal government's strategy in intervening in the credit market. They say that the United States grew to be loaned donan economic powerhouse with a small centralized federal government that largely left business development to the private sector. For more information about the CATO institute't come from banks; rathers criticism, they come directly from the SBA and are administered to see this [http://www.cato.org/publications/congressional-testimony/waste-fraud-abuse-small-business owners via nonprofit community-based intermediariesadministration-programs| article].  ==Literature=====SBIC===*[http://www.entrepreneurgao.comgov/articleproducts/79254| GAO-16-107 GAO report on SBIC]*Must concurrently enroll *GAO recommended that SBA provide guidance to SBIC on how to collect and report data on their investments in technical assistance classes administered by minority, women, and veteran owned businesses.*[http://www.jdsupra.com/legalnews/description-of-the micro-lender intermediaries to be eligible for loan.small-business-23940/ Description of the SBIC Debenture Program]===OtherSBIR===*Export Working Capital Program provides short[http://www.gao.gov/assets/670/669651.pdf GAO report finds SBIR data reporting inadequate] ==McNair Center Internal==[[McNair Center-term working capital to small, export businesses.specific courses of further action regarding SBA]]===Articles===*DELTA program provides both financial [[SBA and technical assistance to help businesses dependent on defense installations transition to civilian markets.Data Reporting]]