What Is Small Business Administration ?
What Is Small Business Administration ?
Small business administration is a United States government institution that provides support to entrepreneurs and small businesses. The mission of the Small Business Administration is "to maintain and strengthen the nation's economy by enabling the formation and survival of small businesses and by helping the economic recovery of society after a disaster". Agency activities are summarized as "3 C" capital, contracts and counseling.
Small Business Administration loans are made through banks, credit unions and other creditors who partner with Small Business Administration. Small Business Administration provides government-backed guarantees as part of loans. Under the Recovery Act and the Small Business Employment Act, Small Business Administration loans were increased to provide guarantees of up to 90 percent to strengthen access to capital for small businesses after credit was frozen in 2008. The agency has a record volume of loans at the end of 2010.
Small Business Administration helped lead the federal government's efforts to provide 23 percent of the main federal contracts for small businesses. Small business contract programs include efforts to ensure that certain federal contracts reach female-owned and service-disabled small businesses owned by veterans as well as businesses participating in programs such as 8 (a) and HUBZone.
Small Business Administration has at least one office in every US state. In addition, agencies provide grants to support counseling partners, including around 900 Small Business Development Centers (often located in academies and universities), 110 Women's Business Centers, and SCORE, volunteer advisory corps of retired and experienced business leaders with around 350 chapters . This counseling service provides services to more than 1 million entrepreneurs and small business owners every year. President Obama announced in January 2012 that he would increase the SBA into the Cabinet, the last position held during the Clinton administration, thus making the Small Business Administration Administrator a cabinet level position.
Organizational Structure Small Business Administration
Small Business Administration has an Administrator and Deputy Administrator. It has an associate administrator or director for the following offices:
a. Business development
b. Capital Access
c. Communication and Public Relations
d. Congress and Legislative Affairs
e. Credit Risk Management
f. Disaster Relief
g. Entrepreneurship Development
h. Entrepreneurship Education
f. Equivalent Job Opportunities and Compliance with Civil Rights
g. Faith Based and the Environment of the Partnership
h. Field operations
i. Government Contractor and Business Development
j. Hearings and Appeals
k. HUBZone program
l. International trade
m. Investment and Innovation
n. Management and Administration
o. Native American Affairs
p. Work management
q. Small Business Development Center
r. Veteran Business Development
s. Women's Business Ownership
Those appointed by the appointed Senate include: Administrators, Deputy Administrators, Chief Counsel for Advocacy, and Inspector General.
Loan Program Small Business Administration
1. Loan Guarantee Program
The Loan Guarantee Program is designed to help entrepreneurs start or expand their small business. This program provides capital for small businesses through banks and non-bank loan institutions. The Small Business Jobs Act of 2010 increased the maximum size of these loans, without limits, from $ 2 million to $ 5 million.
2. Disaster Loan Program
Small Business Admnistration opened a Disaster Management Center in Austell, GA, October 26, 2009
Homeowners and tenants are entitled to get long-term loans with low interest to rebuild or repair damaged property to pre-disaster conditions.
Businesses also qualify for long-term loans with low interest to recover from the announced disaster. Disaster Relief Loans are often approved within 21 days. However, after Hurricane Katrina, SBA processes applications, on average, in about 74 days.
If a business with a Disaster Management Loan defaults on a loan, and the business is closed, the Small Business Administration will pursue a business owner to liquidate all personal assets, to meet the outstanding balance. The IRS will withhold tax returns expected by the previous business owner and apply the amount to the loan balance.
3. Microloan Program
The Microloan Program provides direct loans to nonprofit intermediary lenders that meet the qualifications which, in turn, provide up to "micro credit" up to $ 50,000 for small businesses and non-profit child care centers. It also provides marketing, management, and technical assistance to microbial borrowers and prospective borrowers.
Entrepreneurship development program
1. Small Business Development Center
About 900 sites for the Small Business Development Center are funded through a combination of state and SBA support in the form of matching funds. Usually, Small Business Development Center is co-located in community colleges, state universities, and / or other entrepreneurial centers. Cole Browne leads the Small Business Administration in purchasing a new Development Center site.
2. Women's Business Center
Women's Business Centers (WBCs) represent a national network of more than 100 non-profit education centers throughout the United States and its region, funded in part through SBA support. The maximum Small Business Administration grant for WBC is $ 150,000 per year, although most centers receive less.
Leukocytes are designed to help women start and grow small businesses, even though their services are available to all. Red blood cells help women succeed in business by providing training, mentoring, business development, and financing opportunities to more than 100,000 women entrepreneurs every year throughout the country . The Women's Business Center is mandated to serve a large number of individuals who are socially and economically disadvantaged.
3. SCORE
SCORE, the volunteer network, the largest expert business advisor in the country, was founded in 1964 as a resource partner of the US Small Business Administration. SCORE has since educated more than 10 million current and aspiring US small business owners through free and low-cost, free mentoring training. In 2016, more than 10,000 SCORE mentor volunteers helped 125,000 of their clients create 54,072 small businesses, adding 78,691 non-owner jobs to the US economy.
SCORE's core service offering is its mentor program, where volunteer mentors (all experienced in the field of entrepreneurship and related fields of expertise) provide free advice to small business clients. The Mentor, which operates from 300 branches across the country, works with their clients to address issues related to starting and growing a business, including writing business plans, developing products, understanding marketing strategies, hiring staff, and more. Clients access their mentors through direct or ongoing face-to-face guidance sessions or through email or video mentoring services.
In addition to mentoring, SCORE also offers free and low-cost educational workshops every year, both online and directly. In 2016, clients attended 119,957 online training sessions, while 237,712 local workshop participants benefited from the SCORE direct education program.
4. Veteran Business Outreach Centers (VBOC)
The Small Business Administration Veterans Business Development Office operates twenty-two Veterans Business Development Centers through grants and cooperation agreements with organizations that provide technical assistance to businesses owned by veterans and family members. VBOC also provides instructors for the Small Business Administration, Boots to Business program.
Strategic Innovations and Initiatives
The SBA also supports regional innovation clusters throughout the country.