Today we will be discussing the small business administration, what it is and what it does. The SBA is a federal organization designed to help small businesses. We will discuss more of what it does in detail today’s article.
The SBA is a federally run organization established in 1953. Its mission is to help small businesses succeed in order to help strengthen the US economy. It does this through various assistance programs including; business planning, loan acquisition assistance, etc. They do offer direct loans in certain circumstances, but this is not typically their function. They are more to consult and assist new owners in understanding the loan process and what to expect from it.
Business planning is one of the most powerful services offered by the SBA. By contacting your local office you can request to have a consultant assigned to you to assist you. They can walk you through the creation of a detailed business plan. It is important to note that business plans are formal documents. These are not just basic guidelines for your future company, but should include in details all potential future expenses and revenue. Getting professional assistance with this is very valuable. It can demonstrate to you where perhaps you have missed critical details in your potential costs that you may have overlooked.
Another service provided by the small business administration, in fact the program they are most known for is the SBA loan program. Although they are not themselves a direct lender they do have loans that are approved based on certain criteria agreed upon by the lender. This can further streamline the processes as you know what to expect from these loans. Again, ask the agent assigned to you to help you find a lender that will meet your needs well.
There are a few directly funded or subsidized programs sponsored by the SBA as well. This includes their disaster relief funding, which they fund directly, as well as certain grant programs that subsidize lending to businesses in certain industries deemed beneficial to the community, make sure to ask your local branch about these programs if you think your company might meet these criteria.
The small business administration is a government run organization designed to help small business and in so doing help the U.S. economy. They are not typically a direct lender, but offer a wide range of services to assist small companies succeed.