Three Functions of the SBA


The Small Business Administration (SBA) has three primary functions: providing access to loans, educating new business owners, and advocacy. We will be discussing these in further detail, in today’s article.

The primary function of the SBA is to provide access to loans. It does this through various loan guarantee programs, which guarantee repayment of a loan that is offered by bank. This guarantee encourages banks to lend money to small companies that would otherwise not qualify.

The second function of the Small Business Administration is to provide education to business owners. They do this through various training programs, which offer both financial understanding and technical assistance. One example of this would be their business plan counseling service. A trained representative of the Small Business Administration would help you in creating your formalized business plan.

The final, and often less publicized, function of the SBA is advocacy. The institution was originally established in 1953 for the purpose of strengthening America by strengthening small businesses. However, not everyone is in favor of strengthening small business, plus there are large interest groups for large corporations.

In order to offset this imbalance of power, the SBA has strong representation in the federal government for small companies. They advocate for good tax policy when it comes to small businesses, as well as special consideration for new entrepreneurial ventures. Through this advocacy, they have been able to continue to provide support for small companies over the last several decades.

For more information, go to SBA at

Three Functions of the SBA was last modified: October 25th, 2011 by Amit Kraidman
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