Sba Pros And Cons

The Small Business Administration (SBA) helps with contracting, counselling, assisting with disasters and capital in starting and continuing small businesses. The SBA was founded through the Small Business Act on July 30th, 1953; however the ideas and philosophies started in the earlier years. Eugene Meyer encouraged and persuaded President Herbert Hoover to model his War Finance Corporation in which he was head of during the World War I. Meyer’s opinion on RFC, “would be a strong influence in restoring confidence throughout the nation and in helping banks resume their normal functions by relieving them of frozen assets (New York Times 1932.)” In December 1931, President Hoover’s administration proposed the Reconstruction Finance Corporation

The SBA has not held position in the president’s cabinet since Clinton’s administration. Maria Contreras-Sweet is the most recent SBA member of President Obama’s cabinet and the administrator of the Small Business Administration today. There are roughly 80 Small Business Administration offices, with at least one office per state today. These offices help employee more than 2,000 people with an annual budget of $985 million dollars, providing over one million entrepreneurs and small businesses annually. All offices provide counseling, contracting, capital, and disaster assistance with new small business owners. The Small Business Administration does not provide direct loans, however they do have partnerships with banks in which they provide the loans. The only two exceptions to this statement is the SBA’s Disaster Relief and PRIME programs. The Disaster Relief Program helps homeowners, renters, businesses of all size, and most nonprofit programs restore damage caused by any natural disasters. The Program for Investment in Micro-Entrepreneurs (PRIME) helps low-income entrepreneurs with grants to help with the financial backings that they need to

Each private sector in the US has standards via the North American Industry Classification System, which sets standards based on the number of employees and the annual receipts. These factors are industry specific and help classify a business as a small business, for example a manufacturing small business cannot employee more than 500 employees and a retail trade company’s annual receipt is restricted to $7 million. SBA’s Office of Government and Contracting to ensure that at least 23 percent of prime federal contracts are assigned to small businesses. The Small Business Innovation Research (SBIR) program provides small businesses with encouragement to compete with larger businesses in high-tech innovation by reserving a specific percentage of Research and Development dollars. SBA’s voice to congress is led by the Office of Advocacy, which helps the opinions of small businesses to be released to congress. There are also several other smaller programs and offices within the Small Business Administration help bring small businesses capital, counseling, and encouragement to continue growing and thriving in America’s