![]() With numerous startup and entrepreneurial programs, SBA works with resource partners to provide small business owners with assistance and guidance at different points on their entrepreneurial journey. Individual agencies often do not meet these goals, or they double- count contracts against multiple set-asides for underserved businesses.Įntrepreneurial development and technical assistance are the largest line items in SBA’s budget. The federal government is required to annually award 23% of direct contract dollars to small businesses and has separate goals for underserved businesses. The procurement process can be confusing and tedious, and SBA has limited tools at its disposal to guide entrepreneurs through this process and create a proper accountability system. SBA guarantees loans for those businesses that cannot reasonably find “credit elsewhere.”įederal contracting can be an important opportunity for small business owners-if they can get a contract or become a subcontractor. Securing financing is especially difficult for business owners of color and other underserved groups. There are glaring gaps in owners’ ability to access credit depending on the age of the business, the size of the loan, and the business’s location. Although not all facets of reauthorization are addressed here, we hope the report provides a starting point for policymakers and stakeholders.Īccessing capital is a persistent problem for small business owners. This report is meant to serve as a guide for reauthorization. We encourage Congress to update the three C’s of SBA: capital, contracting, and counseling. This disjointed approach fails to meet the needs of small business owners and is a disservice to them and taxpayers alike. Since 2000, individual SBA programs have been reauthorized piece by piece. Reauthorization can help ensure taxpayer dollars are spent effectively and that Congress has the opportunity to question potential redundancies. ![]() A little over 22 years later, SBA remains without a comprehensive upgrade that would modernize the agency for the 21st century.Ĭongressional reauthorization of SBA would ensure that the only federal infrastructure specifically designed to support millions of small businesses is up to date. This routine practice continued until December 2000. ![]() ![]() economy and the needs of small business owners themselves. Over its first five decades, Congress routinely reauthorized SBA to help it adapt to the changing landscape of the U.S. The Small Business Administration (SBA) was established in 1953 to “aid, counsel, assist, and protect insofar as is possible the interests of small business concerns.” Since then, SBA has evolved, alongside small businesses, to include new programs and resources. Neither has the mandate for the federal agency that is meant to support them. Over the past two decades-through three recessions and a pandemic- small businesses have proven resilient in the face of considerable challenges. Small businesses have always been vital to the American economy. Give Search Keywords Submit Policy Areas.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |