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Small Business Administration
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Overview
Posted in Federal
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Over the last two decades, small and new businesses have been responsible for creating two out of every three net new jobs in the U.S., and today over half of all working Americans own or work for a small business. The Small Business Administration (SBA) ensures that these businesses have the tools and resources they need to start, grow their operations and create new jobs.
Helping Small Businesses Strengthen and Grow
Over the last three years, the SBA helped small businesses grow by navigating a challenging economic environment while laying the foundation for these businesses to emerge from the economic downturn stronger and more competitive than before. When credit markets froze in 2008, small businesses were hit particularly hard. The SBA stepped in to make sure these businesses had the capital, the counseling and the access to federal contracting opportunities they needed to weather the worst economy since the Great Depression.
From January 2009 through August 2012, the SBA has supported more than $93.5 billion in lending to over 170,000 small businesses. In addition, since January 2009, the SBA has helped counsel and train more than three million small business owners and entrepreneurs through its resource partner network and helped small businesses access more than $286.3 billion in federal contracts. That is $32 billion more in small business contracting than the previous three years, even as overall contract spending decreased during those three years.
Creating Access and Opportunity for Small Businesses and Entrepreneurs Across the Country
Today, the SBA continues to be well-positioned to assist small businesses as they seek opportunities to grow, hire and diversify their business in a growing economy. The Agency continues to build on the strong foundation it has laid over the last three years and is now focused on the next phase of support for America’s small business owners and entrepreneurs.
More Doors; More Dollars
To get more small businesses the capital they needed, the SBA adopted a “More Doors; More Dollars” approach. The Agency secured a commitment from the nation’s 13 largest commercial banks to increase small business lending by $20 billion over the next three years. The SBA also brought 1,000 community banks back to SBA lending for the first time since 2007 and opened up its product lines to qualified financial institutions. This ensured that small businesses had more points of access through which to get the capital they needed to run and grow their businesses.
Streamlined and Simplified Programs Across the Agency
All across the Agency, the SBA has made streamlining and simplifying its programs and products a top priority. For example, the SBA revamped Small Loan Advantage (SLA), the key initiative aimed at expanding access to its 7(a) product for loans under $350,000, eliminating more than 100 pages of paperwork that lenders and borrowers previously had to review and fill out. For high-growth businesses looking for “patient capital,” the SBA reduced the processing times to license new Small Business Investment Company (SBIC) funds to just 5.5 months from an average of almost 15 months in 2009.
And the SBA continues to work to streamline and improve its disaster assistance programs. For example, SBA launched a streamlined disaster loan application in June 2012, which reduced the electronic loan application from 80 screen shots to 20 screen shots. The screen shots consist of a simplified 3 to 4 page application, plus program background, privacy information and two-factor authentication. This streamlining has reduced the electronic loan application paperwork by 70% and the turn-around time for disaster loans to an average of 10 days.
The SBA will continue to streamline and simplify its capital access, contracting, counseling and disaster programs in an effort to ensure that small business owners, lenders and the American taxpayer get the most “bang for their buck” from SBA programs.
Strengthening In-Person and Online Delivery of SBA Programs, Tools and Initiatives
To further assist small business owners and entrepreneurs, the SBA has strengthened, tailored and expanded the delivery of its mentoring, counseling and training initiatives. The Agency has put in place a national structure to effectively deliver these programs both in person and through enhanced online tools. The SBA also continues to focus on expanding the entrepreneurial playing field by targeting the delivery of its mentoring and counseling programs to a wide range of promising small business owners – from young entrepreneurs just starting out to seasoned executives looking to use their experience to strike out on their own. To better reach these entrepreneurs, the Agency has expanded its reach through key interagency and public-private partnerships.
The SBA also co-hosted a series of Economic Forums with the White House. These events, which have focused on both urban and rural communities, bring together local community officials, small business owners and government leaders to discuss the obstacles and opportunities to small business ownership.
“No Wrong Door Approach” for Small Businesses Looking to Access Government Programs and Resources
The SBA also has worked across federal agencies to improve the points of entry through which small businesses can access resources and pertinent information. By adopting a “No Wrong Door Approach,” small businesses seeking federal assistance gain the information they need, regardless of what agency or department they initially contact.
A key part of these efforts is an initiative called BusinessUSA, a user-friendly, virtual, one-stop destination for accessing small business-related programs across the federal government. Agencies across the government will have a BusinessUSA entry point to provide relevant information and assistance.
Foundation for an Economy Built to Last
As the economic recovery continues to take root, it’s critical that small businesses and entrepreneurs are at the forefront of the economy – fueling innovation, job creation and building a strong foundation for American companies and workers to design and build products that are sold in markets around the globe. Small businesses and entrepreneurs drive American competitiveness and job creation. And the SBA has the tools, and the proven track record, to help expand the entrepreneurial playing field to more regions, more communities and more industries.
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Agencies use the goals in agency strategic plans and annual performance plans to inform annual budget decisions, longer-term investment planning, and human resource planning. The agency’s strategic goals and objectives are listed below.
Strategic Goal: Growing businesses and creating jobs
Objective: Expand access to capital through SBA’s extensive lending network
Priority Goal: Process business loans as efficiently as possible
Goal Statement: Process business loans as efficiently as possible.
By September 30, 2013, increase the use of paperless processing in the 7(a) program from 72% to 90% and in the 504 program from 55% to 75% to improve the efficiency, effectiveness, and level of service in its business loan programs.
Description:
SBA will help increase small businesses access to capital by increasing the efficiency of processing business loan applications for approval. An improved experience for small businesses and lending partners is essential to growth in the quantity of small businesses assisted and the quantity of active lending partners. SBA’s increased use of technology will improve quality, and will reduce the complexity of the lending process while making the process more efficient. We will make SBA programs simpler and easier to use for small businesses and lending partners. The 504 loan program is SBA’s primary economic development program, providing “brick and mortar” and/or major equipment financing. The 7(a) loan program is the federal government’s primary business loan program to assist small businesses in obtaining financing when they do not qualify for traditional credit.
Objective: Ensure federal contracting goals are met or exceeded by collaborating across the federal government to expand opportunities for small businesses and strengthen the integrity of the federal contracting certification process and data.
Priority Goal: Increase Small Business participation in government contracting.
Goal Statement:Increase small business participation in government contracting. By September 30, 2013, SBA will increase small business participation in federal government contracting to meet the government wide goal that 23 percent of all prime contracting dollars go to small businesses, and continue to ensure that the benefits of SBA’s small business contracting programs flow to the intended recipients.
Description:
Small business contracting is one of the most important federal programs to help America’s small businesses to grow and create jobs. Small business contracts represent the largest form of direct monetary support for small business in the federal government. Congress has mandated that small businesses receive 23% of federal government prime contracting dollars, including 5% of prime and subcontracts to Small Disadvantage Businesses; 5% of prime and subcontracts to Women-Owned Small Businesses; 3% of prime and subcontracts to HUBZone Small Businesses; and 3% of prime and subcontracts to Service-Disabled Veteran-Owned Small Businesses
Meeting and exceeding the federal government’s small business procurement goals was one of the agency’s Priority Goals for FY 2011-2012. In FY 2011 more than $91.5 billion were awarded to small businesses, which is 21.65 percent of federal government contracting dollars. During the first three years of the Obama Administration, the federal government awarded $286.3 billion or 22.07 percent in federal contracting dollars to small businesses. This is a $32 billion increase over the three preceding years even as we have reduced contracting spending overall. However, the FY 2011 Small Business Procurement Scorecard reflects the need for improvement in small business procurement across the federal government. Over the last year, SBA has increased its efforts and collaboration with federal agencies to provide more opportunities for small business to compete for and win federal contracts, but we know more must be done.
Objective: Strengthen SBA’s entrepreneurial education, counseling and training resources to help create new businesses and support the needs of existing businesses by successfully focusing on core program resources and ensuring these resources are aligned with the n
Objective: Ensure that SBA’s disaster assistance resources for businesses, non-profit organizations, homeowners, and renters can be deployed quickly, effectively and efficiently in order to preserve jobs and help return small businesses to operation.
Priority Goal: Process Disaster Assistance applications efficiently.
Goal Statement:Process Disaster Assistance applications efficiently.
By September 30, 2013, increase the use of the Disaster Assistance electronic loan application (ELA) by 50%.
Description:
The FY 2011 baseline number was 26%, so the goal is to achieve 39% by FY 2013. Increasing the number of paperless disaster loan applications will improve the delivery of the Disaster Loan Program. Response time to the disaster victim will be reduced by the time saved in not mailing a paper application. Additionally, data entered by the disaster victim will imported into the underwriting process seamlessly. As a result, one process will be eliminated by not having Office of Disaster Assitance staff manually input the data into the system. Also, ensures that SBA’s disaster assistance resources for businesses, non-profit organizations, homeowners, and renters can be deployed quickly, effectively and efficiently in order to preserve jobs and help return small businesses to operation.
Objective: Strengthen SBA’s relevance to high-growth entrepreneurs and small businesses to more effectively drive innovation and job creation through both the agency’s existing programs as well as new initiatives.
Priority Goal: Expand Access to Long Term Capital
Goal Statement: Expand Access to Long Term Capital
From FY 2012 through September 30, 2013, commit at least $4.3 billion of capital via the Small Business Investment Company program in order to facilitate access to capital for high growth companies and enhance job creation and retention by these companies.
Description:
The mission of the Small Business Investment Company (SBIC) program is to improve and stimulate the national economy and small businesses by stimulating and supplementing the flow of private equity capital and long term loan funds for the sound financing, growth, expansion and modernization of small business operations while insuring the maximum participation of private financing sources.
The Small Business Investment Company (SBIC) program provides long-term loans and equity capital to small businesses, especially those with potential for substantial job growth and economic impact. SBICs are privately owned and managed investment funds that are licensed and regulated by the SBA. Funds use private capital plus funds borrowed with an SBA guaranty to make investments in qualifying small businesses. By increasing availability of growth capital to small businesses, the SBA is able to assist entrepreneurs during critical business phases from establishment through growth. This capital is generally longer term “patient” capital that is well suited to high-growth companies. This kind of financing is also critical in the current environment in which a tight credit market has limited the availability of capital for small businesses. Early stage businesses face difficult challenges accessing capital, particularly those without the necessary assets or cash flow for traditional bank funding.
Macroeconomic conditions can have a significant impact on investing opportunities and fundraising within the SBIC program. If present conditions deteriorate, achievement of the goal will be more difficult.
Objective: Strengthen outreach to underserved communities and underserved populations.
Priority Goal: Increase Small Business participation in government contracting.
Goal Statement: Increase Small Business participation in government contracting.
Increase small business participation in government contracting. By September 30, 2013, SBA will increase small business participation in federal government contracting to meet the government wide goal that 23 percent of all prime contracting dollars go to small businesses, and continue to ensure that the benefits of SBA’s small business contracting programs flow to the intended recipients.
Description:
Small business contracting is one of the most important federal programs to help America’s small businesses to grow and create jobs. Small business contracts represent the largest form of direct monetary support for small business in the federal government. Congress has mandated that small businesses receive 23% of federal government prime contracting dollars, including 5% of prime and subcontracts to Small Disadvantage Businesses; 5% of prime and subcontracts to Women-Owned Small Businesses; 3% of prime and subcontracts to HUBZone Small Businesses; and 3% of prime and subcontracts to Service-Disabled Veteran-Owned Small Businesses
Meeting and exceeding the federal government’s small business procurement goals was one of the agency’s Priority Goals for FY 2011-2012. In FY 2011 more than $91.5 billion were awarded to small businesses, which is 21.65 percent of federal government contracting dollars. During the first three years of the Obama Administration, the federal government awarded $286.3 billion or 22.07 percent in federal contracting dollars to small businesses. This is a $32 billion increase over the three preceding years even as we have reduced contracting spending overall. However, the FY 2011 Small Business Procurement Scorecard reflects the need for improvement in small business procurement across the federal government. Over the last year, SBA has increased its efforts and collaboration with federal agencies to provide more opportunities for small business to compete for and win federal contracts, but we know more must be done.
Priority Goal: Process business loans as efficiently as possible
Goal Statement: Process business loans as efficiently as possible.
By September 30, 2013, increase the use of paperless processing in the 7(a) program from 72% to 90% and in the 504 program from 55% to 75% to improve the efficiency, effectiveness, and level of service in its business loan programs.
Description:
SBA will help increase small businesses access to capital by increasing the efficiency of processing business loan applications for approval. An improved experience for small businesses and lending partners is essential to growth in the quantity of small businesses assisted and the quantity of active lending partners. SBA’s increased use of technology will improve quality, and will reduce the complexity of the lending process while making the process more efficient. We will make SBA programs simpler and easier to use for small businesses and lending partners. The 504 loan program is SBA’s primary economic development program, providing “brick and mortar” and/or major equipment financing. The 7(a) loan program is the federal government’s primary business loan program to assist small businesses in obtaining financing when they do not qualify for traditional credit.
Priority Goal: Increase Small Business participation in government contracting.
Goal Statement: Increase Small Business participation in government contracting.
Increase small business participation in government contracting. By September 30, 2013, SBA will increase small business participation in federal government contracting to meet the government wide goal that 23 percent of all prime contracting dollars go to small businesses, and continue to ensure that the benefits of SBA’s small business contracting programs flow to the intended recipients.
Description:
Small business contracting is one of the most important federal programs to help America’s small businesses to grow and create jobs. Small business contracts represent the largest form of direct monetary support for small business in the federal government. Congress has mandated that small businesses receive 23% of federal government prime contracting dollars, including 5% of prime and subcontracts to Small Disadvantage Businesses; 5% of prime and subcontracts to Women-Owned Small Businesses; 3% of prime and subcontracts to HUBZone Small Businesses; and 3% of prime and subcontracts to Service-Disabled Veteran-Owned Small Businesses
Meeting and exceeding the federal government’s small business procurement goals was one of the agency’s Priority Goals for FY 2011-2012. In FY 2011 more than $91.5 billion were awarded to small businesses, which is 21.65 percent of federal government contracting dollars. During the first three years of the Obama Administration, the federal government awarded $286.3 billion or 22.07 percent in federal contracting dollars to small businesses. This is a $32 billion increase over the three preceding years even as we have reduced contracting spending overall. However, the FY 2011 Small Business Procurement Scorecard reflects the need for improvement in small business procurement across the federal government. Over the last year, SBA has increased its efforts and collaboration with federal agencies to provide more opportunities for small business to compete for and win federal contracts, but we know more must be done.
Priority Goal: Process Disaster Assistance applications efficiently.
Goal Statement: Process Disaster Assistance applications efficiently.
By September 30, 2013, increase the use of the Disaster Assistance electronic loan application (ELA) by 50%.
Description:
The FY 2011 baseline number was 26%, so the goal is to achieve 39% by FY 2013. Increasing the number of paperless disaster loan applications will improve the delivery of the Disaster Loan Program. Response time to the disaster victim will be reduced by the time saved in not mailing a paper application. Additionally, data entered by the disaster victim will imported into the underwriting process seamlessly. As a result, one process will be eliminated by not having Office of Disaster Assitance staff manually input the data into the system. Also, ensures that SBA’s disaster assistance resources for businesses, non-profit organizations, homeowners, and renters can be deployed quickly, effectively and efficiently in order to preserve jobs and help return small businesses to operation.
Priority Goal:Expand Access to Long Term Capital.
Goal Statement: Expand Access to Long Term Capital.
From FY 2012 through September 30, 2013, commit at least $4.3 billion of capital via the Small Business Investment Company program in order to facilitate access to capital for high growth companies and enhance job creation and retention by these companies.
Description:
The mission of the Small Business Investment Company (SBIC) program is to improve and stimulate the national economy and small businesses by stimulating and supplementing the flow of private equity capital and long term loan funds for the sound financing, growth, expansion and modernization of small business operations while insuring the maximum participation of private financing sources.
The Small Business Investment Company (SBIC) program provides long-term loans and equity capital to small businesses, especially those with potential for substantial job growth and economic impact. SBICs are privately owned and managed investment funds that are licensed and regulated by the SBA. Funds use private capital plus funds borrowed with an SBA guaranty to make investments in qualifying small businesses. By increasing availability of growth capital to small businesses, the SBA is able to assist entrepreneurs during critical business phases from establishment through growth. This capital is generally longer term “patient” capital that is well suited to high-growth companies. This kind of financing is also critical in the current environment in which a tight credit market has limited the availability of capital for small businesses. Early stage businesses face difficult challenges accessing capital, particularly those without the necessary assets or cash flow for traditional bank funding.
Macroeconomic conditions can have a significant impact on investing opportunities and fundraising within the SBIC program. If present conditions deteriorate, achievement of the goal will be more difficult.
Strategic Goal: Building an SBA that meets needs of today’s and tomorrow’s small businesses.
Objective: Strengthen SBA’s core programs and operations to ensure that they are high performing, effective, and relevant to the needs of the small business community.
Priority Goal: Process business loans as efficiently as possible.
Goal Statement: Process business loans as efficiently as possible.
By September 30, 2013, increase the use of paperless processing in the 7(a) program from 72% to 90% and in the 504 program from 55% to 75% to improve the efficiency, effectiveness, and level of service in its business loan programs.
Description:
SBA will help increase small businesses access to capital by increasing the efficiency of processing business loan applications for approval. An improved experience for small businesses and lending partners is essential to growth in the quantity of small businesses assisted and the quantity of active lending partners. SBA’s increased use of technology will improve quality, and will reduce the complexity of the lending process while making the process more efficient. We will make SBA programs simpler and easier to use for small businesses and lending partners. The 504 loan program is SBA’s primary economic development program, providing “brick and mortar” and/or major equipment financing. The 7(a) loan program is the federal government’s primary business loan program to assist small businesses in obtaining financing when they do not qualify for traditional credit.
Objective: Invest in SBA’s employees so they can more effectively serve small businesses.
Objective: Mitigate risk to taxpayers and improve oversight across SBA programs.
Priority Goal: Increase Small Business participation in government contracting.
Goal Statement: Increase Small Business participation in government contracting.
Increase small business participation in government contracting. By September 30, 2013, SBA will increase small business participation in federal government contracting to meet the government wide goal that 23 percent of all prime contracting dollars go to small businesses, and continue to ensure that the benefits of SBA’s small business contracting programs flow to the intended recipients.
Description:
Small business contracting is one of the most important federal programs to help America’s small businesses to grow and create jobs. Small business contracts represent the largest form of direct monetary support for small business in the federal government. Congress has mandated that small businesses receive 23% of federal government prime contracting dollars, including 5% of prime and subcontracts to Small Disadvantage Businesses; 5% of prime and subcontracts to Women-Owned Small Businesses; 3% of prime and subcontracts to HUBZone Small Businesses; and 3% of prime and subcontracts to Service-Disabled Veteran-Owned Small Businesses
Meeting and exceeding the federal government’s small business procurement goals was one of the agency’s Priority Goals for FY 2011-2012. In FY 2011 more than $91.5 billion were awarded to small businesses, which is 21.65 percent of federal government contracting dollars. During the first three years of the Obama Administration, the federal government awarded $286.3 billion or 22.07 percent in federal contracting dollars to small businesses. This is a $32 billion increase over the three preceding years even as we have reduced contracting spending overall. However, the FY 2011 Small Business Procurement Scorecard reflects the need for improvement in small business procurement across the federal government. Over the last year, SBA has increased its efforts and collaboration with federal agencies to provide more opportunities for small business to compete for and win federal contracts, but we know more must be done.
Strategic Goal: Serving as the voice for small business.
Objective: Collaborate with other agencies to strengthen the delivery of programs, resources and services.
Objective: Foster a small business-friendly environment by encouraging Federal Agency awareness about the impact of unfair regulatory enforcement and compliance efforts, reducing burdens on small business, and improving small business research.
Objective: Promote the availability, analysis, and dissemination of the most current, accurate, and detailed statistics possible on small business.
Small Business Administration is also working on advancing the Administration’s government-wide management agenda, which is focused on:
Information Technology: efforts include effectively managing large-scale IT projects, achieving operational efficiency, and improving cyber security.
Financial Management: efforts include reducing improper payments, managing property effectively, increasing reliability of financial information and improving debt collection.
Acquisitions: efforts include saving money on contracting, decreasing contracting risk, expanding strategic sourcing, and developing the acquisition workforce.
Human Resources: efforts include hiring the best talent, engaging the workforce, and expecting the best from employees.
Customer Service: efforts include offering more services online, creating a dashboard on citizen services, and adopting customer service best practices.
Sustainability: efforts include reducing the government’s carbon footprint, developing agency sustainability plans, and developing a comprehensive sustainability scorecard.
Open Government: efforts include promoting transparency, fostering participation, and increasing collaboration.
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