Today, we’ll be discussing a bit of the history of the Small Business Administration. President Herbert Hoover created the Reconstruction Finance Corporation in 1932 to help with the financial crisis brought on by The Great Depression. This was the predecessor of the SBA. Read on to learn more.
The SBA itself was founded in 1953 as a federally run organization. Their mission is to strengthen the United States economy by assisting small businesses. They’ve helped tens of thousands of small businesses in working towards that goal during the almost 60 years they have been in existence.
Currently, the SBA offers a wide range of programs. For one, they have education and training for new and experienced business owners alike. Also, they have trained individuals on staff to assist you with your formal business plan.
Having a formal plan is important in your quest to get funding, since lenders will likely want to see this document. Last, but not least, is their myriad of loan programs. Although they are not a direct lender, they do support private capital markets by partially guaranteeing loans to small businesses.
The SBA has been around for nearly 60 years. In those 60 years they have striven towards their goal of helping to keep America’s economy strong. Their mission is based on the belief that having a large number of small companies helps to diversify the economy to protect it from economic catastrophes and systemic issues that would affect larger institutions. Thus, they offer a wide range of programs to this end.