The small business administration or SBA for short was established in 1953 with the mission of strengthening America’s economy by strengthening small business. It is a federally run institution which provides a plethora of services for small businesses and small business owners. We will be discussing some of the services in today’s discussion.
One of the least used but most powerful resources which they offered to you is professional consulting in the creation of your business plan Erie it is important to note that your business plan is not simply your outline for your company but is a formalized document which includes all of your company’s projected expenses as well as the projected revenue of your company. It is highly detailed and should include any and all potential items. Having this document will not only help your company see where perhaps they can make improvements or where their assumptions were incorrect but it can also be very instrumental in the loan approval process.
Another service which is offered by the SBA is there loan guarantee program. This program they help to guarantee the successful completion of loans from major banks to small businesses. Many large banks prefer not to lend to smaller companies as the risk is greater and the potential reward is less. These guarantee programs change this equation for large banks because there is much less risk as your loan is guaranteed by a federal institution. Through this program they have been able to assist tens of thousands of companies to obtain the funding which they need in order to be successful.
In addition to these two primary functions they have also helped in many other ways. For one they run a disaster relief funding program which funnels money into disaster struck areas into nonprofit organizations and companies who are helping to rebuild those areas. This has helped many people get their lives back together more quickly. They also offer a number of guarantee programs and grants for business owners who work in areas that have been hardest hit by the poor economy and also with business owners who are in less privileged groups such as women or minorities. These programs have gone a long way in helping these groups and individuals to succeed in business and have helped to revitalize the communities in which they operate.
In short the small business ministration or SBA for short is an institution created by the government to help small businesses and communities succeed in order to help America succeed.