Whether you’re looking to start a business or you have been in business for a while, the Small Business Administration can help you. It’s a federal agency that provides support and services for entrepreneurs and small businesses.
History
During the Great Depression, a federally funded lending program was created to help businesses that were in the dark. In the years that followed, the SBA was responsible for providing loans to some of the largest companies in the world. The program has had its share of controversy, however. Despite the controversy, it has continued to be an important part of the American economy for decades to come.
The aforementioned federally funded lending program is not the only federal agency with a mandate to help small business owners. The Small Business Administration’s Office of Information Resources Management (OIRM) has been a major force in promoting small business information, education and training, and reducing regulatory barriers for small businesses. Moreover, the OIRM plays an important role in helping small businesses find partners and customers.
7(a) loan program
Whether you are starting a new business or trying to grow an existing one, the Small Business Administration’s 7(a) loan program can help you obtain the funding you need. There are several types of loans available, and interest rates are based on the loan amount and repayment term. There are even some special purpose programs that have additional eligibility requirements.
The SBA 7(a) loan program is designed to help small businesses in underserved markets. It features lower down payment requirements and longer terms. It also includes the Paycheck Protection Program, which helps qualifying small business owners avoid layoffs by providing a loan to pay for payroll and fixed costs.
The SBA guarantees a portion of your loan, ranging from 50% to 90%. However, you may have to pay a guaranty fee. The fee is charged to the lender and is typically passed on to the borrower.
SBIR/STTR program
Designed to stimulate technological innovation and promote technological transfer, the Small Business Administration (SBA) SBIR/STTR program provides grants and contracts to small business administrations (SBCs) and research institutions. SBIR/STTR awards are made by federal agencies on a competitive basis after evaluation of proposals. The program encourages participation by minority and disadvantaged persons in research and technological development.
The SBIR program was initially created by the Small Business Innovation Development Act in 1982. It was expanded in 1992 with the passage of the SBIR and Development Enhancement Act. Since then, Congress has revised the program several times. The SBIR/STTR Reauthorization Act of 2017 (Public Law 114-328) is the current SBIR/STTR law. It sets policy goals and requirements for SBIR/STTR programs.
Under the SBIR/STTR program, federal agencies set aside a part of their extramural research and development (R&D) budgets for the SBIR program. They also have the option to tailor the program to meet their own needs.
PTACs (procurement technical assistance centers)
PTACs (Procurement Technical Assistance Centers) for small business administration are free or low-cost programs that help small businesses pursue government contracts. These centers provide counseling and training on contracting, marketing, and financial issues. They also provide one-on-one counseling and classes. They can help you register for the System for Award Management (SAM), the federal government’s procurement database.
These centers are affiliated with Small Business Administration (SBA) offices, state governments, and universities. They also partner with economic development corporations and community colleges.
PTACs are located in most states. They provide services for local government contracting, state government contracting, and federal government contracting. They also have a local presence in Puerto Rico, the District of Columbia, and Guam.
PTACs have counselors with backgrounds in government acquisitions. These counselors provide individual and group counseling, as well as classes on government contracting. They also can assist your firm with audits and proposals.
Bad loan portfolio
Among the myriad federally insured loans issued to date, the Small Business Administration’s (SBA) flagship jumbo loan has the dubious distinction of being the worst of the worst. The baffling question is, why? The SBA owes its poor record to a host of industry mishaps, including a slew of bad loans, overvalued assets, and lax oversight. The aforementioned tidbit has been the subject of multiple investigations over the years. The SBA has recently announced that it will be consolidating its small business loan portfolio into three smaller entities. The consolidation will allow for a better focus on borrowers and will hopefully result in more loaned out to small businesses in the near future. The move is not without its niggles, however. A recent review by the SBA’s internal audit division revealed that many of the loans made were misplaced or foreclosed on.
