The Small Business Administration (SBA) is a federal agency that supports American entrepreneurs through loans, training programs, and business counseling. Established in 1953, the SBA helps small businesses access capital, compete for government contracts, and recover from disasters.
Primary SBA Programs:
- SBA loans with favorable terms and lower down payments
- SCORE mentoring connecting entrepreneurs with experienced executives
- Small Business Development Centers providing free consulting
- Women’s Business Centers offering specialized support
The SBA doesn’t directly lend money but guarantees portions of loans made by approved lenders. This reduces risk for banks, making them more willing to lend to small businesses. Popular loan types include 7(a) loans for general business purposes and 504 loans for real estate and equipment purchases.
During economic challenges, the SBA often expands programs to help businesses survive. The Paycheck Protection Program during COVID-19 demonstrated the agency’s crisis response capabilities. Small businesses can access SBA resources through local offices, online platforms, and partner organizations nationwide.
The SBA defines small businesses by industry standards, typically companies with fewer than 500 employees or specific revenue thresholds.