In today’s tight financial markets there is a real push to cut government programs whenever possible. As such all programs are coming under scrutiny and the SBA or small business administration is no exception. So the question we will address today is whether or not the SBA apply now as much as it did when it was first established some five decades ago.
The small business administration or SBA for short was established in 1953 as a federally run program designed to assist new small businesses in America. The goal was to give America an edge by having more entrepreneurs and more business owners. But is this service necessary or is this simply redundant with private sector services? Does the SBA apply now?
The primary difference between the SBA and most private services, not including some not-for-profit services, is price. For some new potential business owners where costs are very tight any free assistance can go a long ways. One such way in which the small business administration assists new businesses is through business plan consulting. By contacting your local chapter and asking to have an agent assigned to your company you can have dedicated consulting provided to you to assist you with the creation of your business plan. Having a solid business plan goes a very long ways when it comes to not only understanding your own costs and making improvements where necessary, but also in demonstrating to potential lenders that you have potential profitability and are a good investment.
Another way, in which the SBA apply now, is with new and existing small business owners is why helping them to obtain funding for their company. Certain loans are actually pre-qualified to be part of the small business administration loan program. Although this loan program is not directly funding businesses in the way that private sector lenders are, it does layout certain pre-existing criteria which can be helpful in speeding up the process as well as ensuring that all parties are aware of what their agreement will be. This may not be necessary in all circumstances but has assisted many companies in obtaining the funding which they need.
So does the SBA apply now? This is really a matter of opinion as to whether or not the services are redundant. But there is no doubt that they have assisted many businesses not only in setting up a proper plan for their future company but also in obtaining the funding which they require to open their doors.