The Small Business Administration (SBA) is a United States government agency that provides support to small businesses.

The mission of the Small Business Administration is "to maintain and strengthen the nation's economy by enabling the establishment and viability of small businesses and by assisting in the economic recovery of communities after disasters."

The SBA makes loans directly to businesses and acts as a guarantor on bank loans. In some circumstances it also makes loans to victims of natural disasters, works to get government procurement contracts for small businesses, and assists businesses with management, technical and training issues.

The SBA has directly or indirectly helped nearly 20 million businesses and currently holds a portfolio of roughly 219,000 loans worth more than $45 billion making it the largest single financial backer of businesses in the United States.

History

The SBA was established on July 30, 1953, by the United States Congress with the passage of the Small Business Act. Its function was to "aid, counsel, assist and protect, insofar as is possible, the interests of small business concerns." Also stipulated was that the SBA should ensure a "fair proportion" of government contracts and sales of surplus property to small business. This was accomplished primarily through the Small Business Innovative Research program and government "set-asides."

The SBA has survived a number of threats to its existence. In 1996 the then newly Republican-controlled House of Representatives planned to eliminate the agency. It survived and went on to receive a record high budget in 2000. Renewed efforts by the Bush Administration to end the SBA loan program have met congressional resistance, although the SBA's budget has been repeatedly cut, and in 2004 certain expenditures

Organizational structure

The SBA has an associate administrator for the following offices:

• Communications and Public Liaison
• Congressional and Legislative Affairs
• Disaster Assistance
• Entrepreneurial Development
• Equal Employment Opportunity and Civil Rights Compliance
• Field Operations
• Government Contracting and Business Development
• Hearings and Appeals

• Inspector General
• International Trade
• Investment
• Management and Administration
• Minority Enterprise Development
• Native American Affairs
• Size Standards
• Small Business Development Centers
• Surety Guarantees
• Technology
• Veterans Affairs
• Women's Business Ownership

SBA loan programs

The most visible elements of the SBA are the loan programs it administers. The SBA itself does not grant loans with the exception of Disaster Relief Loans. Instead, the SBA guarantees against default certain portions of business loans made by banks and other lenders that conform to its guidelines. Disaster Relief Loans are issued directly from the SBA.