When was sba established

From through , I worked as general and then-chief counsel to the U. Senate Committee on Small Business and Entrepreneurship, where I helped write laws to aid small businesses recover from the Great Recession.

The Small Business Administration was established in as an independent agency dedicated to counseling and advocating for small businesses. At the time, there were allegations of cronyism and political favoritism that made it harder for smaller companies to compete for lucrative government contracts.

The SBA was meant to help small businesses bid for more contracts and access capital, as well as provide aid after a disaster. Its roots in helping small businesses compete for government contracts has resulted in a range of definitions as to what constitutes a small business.

The more than 30 million small businesses the SBA counts today are vital to the U. In its more than six decades of existence, the SBA has been threatened on numerous occasions. However, the agency survived this threat and went on to receive a record budget in The loan programs offered by the SBA are among the most visible elements the agency provides.

The number one function of these loan programs is to make loans with longer repayment periods available to small businesses. Loans backed by the SBA include Loan—also called a grow loan— which provides small businesses with financing to buy some of the fixed assets they need to run their operations including real estate.

The 7 a loan, on the other hand is the agency's primary loan program. Other SBA-guaranteed loan programs include. These loans are generally provided by financial institutions, with the SBA acting as a guarantor. Small businesses qualify for loans more easily when they are guaranteed by the Small Business Administration. The agency also allows entrepreneurs to make lower payments for a longer period of time. Despite numerous attempts to do away with the SBA entirely, many political officials and offices continue to support the agency.

Small Business. Your Privacy Rights. To change or withdraw your consent choices for Investopedia. At any time, you can update your settings through the "EU Privacy" link at the bottom of any page. These choices will be signaled globally to our partners and will not affect browsing data. We and our partners process data to: Actively scan device characteristics for identification. I Accept Show Purposes. Your Money. The SBA has a range of definitions unique to each industry regarding what qualifies as a small business.

Early versions of the SBA include:. The Equal Opportunity Loan EOL Program was then established in to assist small business owners who live below the poverty line and struggle to attract financial backing. Its programs now include specialized outreach to women, minorities, and armed forces veterans, among others.

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